IN a blow to the north west and north east regions, clothing manufacturer Fruit of the Loom has announced a return to shorter working hours for 3,000 workers at its factories in Donegal and Derry.
Blaming poor sales and difficult trading in its main European markets, the US textile and clothing giant which employs 3,300 people in Ireland, has said those affected will be put on a three day week from July 1st. Its spinning mill at Campsie in Derry where it employs 240 people, will not be affected, it said yesterday.
The company, which manufactures underwear, sportswear and other apparel for the European market, has also postponed its move to a new factory at Dungloe, Co Donegal. The new 70,000 sq ft factory was due to come into production in October, creating an additional 500 jobs as part of a £3.7 million investment.
The announcement comes just months after workers resumed full working hours at the Derry and Donegal plants. Production was scaled back in October 1995 because stocks of T-shirts and jogging shorts were higher than anticipated orders.
SIPTU, the trade union which represents the majority of workers at the two factories, yesterday said it was "disappointed" with the return to a three day week.
The union's representative for the Donegal region, Mr George Hunter, said it was now seeking assurances from management on the future of both factories. It has requested the company to undertake a full analysis of its Irish operations to be discussed at a meeting next Monday, he said.
Reacting to the announcement last night, Labour Senator, Mr Sean Maloney, said he would be urging the company to reconsider its decision. Mr Maloney said the short time working arrangements would significantly reduce workers take home pay and have a negative impact on the whole region.
Informing workers of the new arrangements, the company said the introduction of a three day week was being made after "careful consideration" and was due to factors "beyond its control".
The company told workers it had been unable to increase its sales in line with its forecasts for this year. Sales of its leisure products, particularly T-shirts, had been particularly weak, it said.
A combination of bad weather in the early months of the year, a weaker than expected tourist market and a lower spend by companies on promotional clothing, had kept sales figures below target.
Industry sources have suggested that the group has been affected by the influx of cheaper clothing products, mainly produced in Third World states such as Mexico, on to the European market.
If this continues, the sources believe the group may come under pressure to scale back the number of low skilled sewing jobs at its Irish factories, switching this side of its production to a cheaper location. It is believed that such a decision would affect a relatively small proportion of its Irish workforce.
The Fruit of the Loom corporation has reported a sharp drop in earnings in the first three months of 1996 compared with its performance in the same period last year.
