Harney to be told of job losses

Fruit of the Loom chairman and chief executive officer, Mr Bill Farley is finalising his review of the group's Irish operations…

Fruit of the Loom chairman and chief executive officer, Mr Bill Farley is finalising his review of the group's Irish operations ahead of a crucial meeting with the Tanaiste, Ms Harney, on Monday.

He met Fruit of the Loom's local and European management team in Donegal and Derry yesterday and is expected to outline a strategy for the future of the company's Irish operations next week. Mr Farley refused to make any comment on the scale of any job losses in Donegal ahead of his meeting with Ms Harney.

The company has already conceded that it is considering plans to close some of its T-shirt sewing facilities, which employ up to 700 people. It has also announced the reintroduction of short-time working from September 21st because of a slump in sales of its products in the European market.

Workers leaving the facility yesterday were generally reluctant to discuss developments at the company. "It's a sad state of affairs. There's nothing but meetings going on all day," said Ms Maisie Grant. Mr Farley and his management team will be examining the group's entire cost structure and trying to identify where the bulk of any rationalisation should occur. Any decision to lay off workers will also be measured against the overall cost to the company of a substantial redundancy payment to staff, as well as the repayment of employment grants to IDA Ireland in respect of those jobs lost. The precise timing of any redundancy programme is also understood to be under discussion.

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Some 53 workers at the Fruit of the Loom plant in Dungloe, Co Donegal, have already received a three-month redundancy notice from the company and were subsequently told they too would be put on short-term working for the duration of their tenure with the group.

In a statement yesterday, the workers at that plant vented their anger at the imposition of short-time working, saying it was "the final straw". They have appealed to management to reverse that decision and allow them to end their final three months with dignity.