Fears for hundreds of jobs at car-parts firm

Fears are growing for hundreds of jobs in Munster with reports that German car components company Kostal is planning to restructure…

Fears are growing for hundreds of jobs in Munster with reports that German car components company Kostal is planning to restructure its Irish operations.

Kostal employs about 400 people in Mallow, Co Cork, and 600 in Abbeyfeale, Co Limerick.

The company is due to hold meetings with employees at both plants at 8am tomorrow.

It is not yet known what the outcome of the meetings will be, but union officials said they were concerned at the development.

"Members were on short-time before Christmas and only returned to work this week. This obviously reflects a downturn in the motor trade," said Siptu's Mallow branch organiser John Cooney.

"Our members will be briefed on developments tomorrow and we will be meeting company representatives on Monday to discuss the options available to tackle the situation."

Limerick sectoral organiser Karan O'Loughlin said Siptu would be engaging with Kostal through the normal consultation process in the coming days.

"It is our absolute priority to work with everybody to maintain employment at both sites and we will be working closely with the company to do so," she said.

Labour Party TD for Cork East Séan Sherlock called on the Tánaiste Mary Coughlan to intervene and to put together a plan of action to help support the automotive sector in weathering the economic storm.

"No stone should be left unturned in the effort to safeguard those jobs," he said. "The situation in Mallow is already extremely serious. Numbers on the live register in the town have virtually doubled in just a year, from 908 in December 2007, to 1794 in December 2008."

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist