EMC, one of the flagship high-tech industries in the State, is seeking 160 voluntary redundancies at its Cork plant as part of a worldwide rationalisation programme.
The news has been greeted with dismay by the workers at the plant who had agreed to work short time and took unpaid leave at the end of last year and the beginning of this year as part of an effort to avoid job losses during what the company had described as a difficult period.
The Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney said she was very disappointed. Acknowledging that the severance package and voluntary nature of the redundancies would ease the impact, she said the priority was to ensure alternative employment.
Local TD, Mr Batt O'Keeffe, said yesterday that news of the staff reduction had come as "a dramatic blow". Mr O'Keeffe, who lives near the plant, said he knew many of the workers and their families and was well aware of the sacrifices they had made to stave off redundancies. "It is particularly difficult for them because we all felt the plant was on the road to recovery after a difficult patch and that the efforts of the staff had paid off," Mr O'Keeffe added.
The high profile EMC, specialising in information storage systems, was regarded as a blue chip certainty amongst the new breed of technology companies attracted to Cork by IDA Ireland as a replacement for the traditional manufacturing industries which had been declining in recent years. The company's private jet was often seen at Cork Airport as executives from the parent operation in the US came and went, and the Cork plant, with 1,000 employees, was seen as a significant contributor to overall performance.
The demand for a cutback in staff, however, has been sweetened somewhat by a generous compensation package. Staff who accept voluntary redundancy will receive six weeks pay for each year worked as well as statutory entitlements, while staff who have been on the payroll for just two years will be offered 12 weeks pay for each year of service.
The company was founded by the US ambassador to Ireland, Mr Richard Egan. Meanwhile, in east Cork, a glimmer of hope emerged yesterday at Youghal Carpets where closure has been announced with the loss of 200 jobs. Following day-long talks with SIPTU, management at the plant has said that if the Government is willing to provide financial assistance in the region of €1.5 million, the plant will remain open until the end of December.
Sources said it was unclear what Youghal might have in mind and pointed out that it was not possible under EU legislation to prop up ailing or unprofitable companies.
According to SIPTU branch secretary, Mr Joe O'Flynn, financial assistance would provide leeway for the expected recovery in the carpet industry to take effect.
"Mr George Corri, the New York-based owner, has indicated he would be willing to keep the plant open if the financial assistance was available. In our view, it would be well worth such an investment by the Government when you think of what the social welfare payments for 200 workers would amount to. Our belief is that if the investment is made, the recovery will have kicked in by December and the immediate future of the plant will be assured," Mr O'Flynn said. He said SIPTU general secretary, Mr John McDonnell, would meet the Tánaiste to discuss the matter.
SIPTU has asked the Cork-based Government TDs to attend a meeting on Friday after which a general meeting of Youghal Carpets staff will be held at Connolly Hall. Mr O'Flynn said a reversal of the decision to close the plant would mean that companies like Munster Carpets and Navan Carpets would not have to import woven yarn. This was another critical factor which the Government should take into account.
