A UNION official in Drogheda has criticised the decision of a local factory to lay off 54 of its 77 workers despite the fact that it is making a profit.
Mr Michael Walsh, SIPTU branch secretary, said the announcement by W&C McDonnell Ltd (McDonnells) to shut down margarine production at its Drogheda plant was the second major blow to hit the town in a fortnight.
Last week Coca Cola announced it was cuttings its workforce of 330 by 108. The Drogheda Coca Cola plant is also profitable, Mr Walsh said.
"These decisions raise the whole question of Partnership 2000. If these companies are not making losses then surely before making these announcements they should sit down with the social partners and see what can be done, rather than making the announcements and then inviting us in.
Mr Walsh said both companies had received government support and good co operation from trade unions over the years. He is now to meet the Minister of State for Enterprise and Employment, Mr Pat Rabbitte, to discuss the two decisions.
A spokeswoman for McDonnells said profits at the Drogheda plant over the last number of years were short of what was necessary to maintain the business.
Production costs at the Drogheda plant were now twice those at its sister company in Britain, yet half of the margarine produced in Drogheda was for the British company.
Despite investment programmes and the best efforts of management and staff the Drogheda volumes gave poor economies of scale, she said.
McDonnells is part of Unilever Ireland, which employs some 1,200 people in the Republic. Production of soups and sauces is to continue at the Drogheda plant.
