SOME 130 employees affected by the loss of a contract at Keelings Distribution are to be offered jobs with the winning contractor, the fruit company said last night.

Siptu said its members were yesterday told that they faced redundancy because the firm had lost a transport logistics contract with Tesco.

Most of those affected are drivers at the Ballymun, Dublin based company but some management and support staff also face layoffs, the union said.

Siptu said Keelings employees are being offered a transfer to winning contractor Stobart Ireland but with no guarantee concerning future pay and conditions.

“All employees impacted by the announcement will be offered jobs with the new contractor,” Keelings Distribution said in a statement. “There would be no impact on pay, benefits or service,” the statement added.

It is understood that Keelings is offering redundancy to affected workers and that Stobart Ireland will be offering jobs to all staff at the same pay, benefit and recognising service.

The union said it would be balloting all 600 members at the company for strike action if it proceeds with the job losses, as it claims that Keelings has breached agreements.

“The decision to make staff redundant is in complete breach of our agreements, not to mention the Information and Consultation Act requiring them to give staff and the union proper notice of proposed job losses”, Siptu sector organiser Pat Ward said last night.

“Stobart and Keelings are also proposing to ignore transfer of undertakings legislation,” he said.

In April the union reached an agreement with Keelings for more flexibility, a pay freeze and reduced rates for new recruits, he said.

“We did so because of assurances from the company that the savings would ensure job security. The ink is hardly dry on the agreement when it is being torn up.” he added.

The union called for an urgent meeting with the company. Keelings said last night that it was available to talk.