The company at the centre of a sit in protest by former employees over redundancy payments says the negative publicity generated by the protest has led to the loss of customers.
Foam manufacturer Vita Cortex said the ongoing dispute at its plant on the Kinsale Road in Cork may eventually result in further job losses. Vita Cortex currently employs 60 staff in Cork, Athlone and Belfast.
"The ongoing negative publicity has undermined our management's efforts to maintain the existing levels of business and the employment needed to service it, which is heading to further potential job losses in the very near future," the company said in a statement tonight.
"We are fearful that the company and its remaining workforce may now become the victims of misperception and misinformation resulting in a basic failure to accept the reality of the company's financial situation."
Some 32 former workers at the Cork plant are seeking 2.9 weeks pay per year of service in line with previous redundancy deals at the company, which they say will amount to a total payment of €1.2 million.
The company says it told workers their redundancy would have to come from the State's social insurance fund unless Nama would agree to release €2.5 million held on deposit by another Vita Cortex firm on foot of an AIB loan taken over by Nama.
Vita Cortex tonight confirmed it had submitted a claim for statutory redundancy for the workers after auditors verified its financial position under the "inability to pay" application process.
"The company is awaiting the reply of the social insurance fund to confirm approval of the application but concern now has shifted towards the security of the remaining business and the jobs of over sixty people employed by the group," it said.
Minister for Enterprise Richard Bruton earlier this week called on management and unions at the company to enter talks at the Labour Relations Commission.
"We welcome calls for LRC intervention but it is our understanding that the reason the LRC are not getting involved is because the prospect of a resolution does not exist due to the fact that the company is unable to pay rather than refusing to pay," Vita Cortex added.
TEEU general secretary Eamon Devoy and president Frank Keohane visited the 32 workers at the Vita Cortex plant on Kinsale Road in Cork this morning in a gesture of solidarity.
Mr Devoy pledged the support of the TEEU to the workers, some 27 of whom are members of Siptu, who have been occupying the premises for the past 21 days.
“I think they are very brave to do what they are doing and they need support and solidarity in that venture,” said Mr Devoy, who predicted that ultimately the workers would get acceptable redundancy payments.