A further 125 job losses were announced in Cork yesterday, following the threatened closure of Youghal Carpets and the shedding of 160 EMC workers.
Smurfit Corrugated Cases in the city yesterday said it was to cut its workforce by 45, while Surfacemount Technology Centre (SMTC) announced the immediate layoff of 80 temporary employees.
SIPTU had been in talks with SMTC for a week, after its main UK-based customer, Simoco, decided to call in an administrator. SMTC is a contractor to the electronics industry and the contract's loss had inevitable consequences for the Cork operation. The 80 employees who were laid off are not entitled even to statutory redundancy because most of them have been with the company for less than six months. Union sources said they received a small ex-gratia payment yesterday.
SIPTU said SMTC management would continue to review the situation and the implications for the remaining 120 workers. However, an official added that nothing was certain.
While SIPTU yesterday held out a slim hope for the Youghal Carpets plant's future, the Tánaiste indicated that the Government was constrained by EU law and there could be no rescue funding for the plant.
SIPTU had said management would keep the plant open if the Government injected €1.5 million.
However Mr John McDonnell, general secretary of SIPTU, said after meeting Ms Harney last night, that although there would not be direct financial assistance, the IDA is to be asked to meet the company with a view to producing a new business plan.