PJ CARROLL, one of Dundalk's oldest companies, is seeking to reduce its 250-strong workforce by one third following a further decline in the domestic market for its tobacco brands and the loss of substantial export orders.

The redundancies are part of a plan designed to restore competitiveness to the plant and to secure its future in Dundalk.

ATGWU secretary Mr Brendan Hodgers claimed the employees had been treated deplorably and said he suspected the decision to cut the workforce was taken some time ago.

The news was given to employees on Thursday and they were told that the measures would "allow the company to continue to invest in Carroll's brands, with a view to arresting the loss of market share in Ireland, thereby better ensuring the long term future of the company".

The workforce was given the day off yesterday and each employee received a letter in the post yesterday morning outlining a package they would be entitled to if they accepted the redundancies, the ATGWU said.

Mr Hodgers said none of the unions was consulted about the plan despite concluding two years of negotiations to improve competitiveness earlier this year.

Ms Jane Boushell, SIPTU secretary in Dundalk and secretary of the unions at the plant said everyone was shocked at the news. "This was a bolt from the blue. Our priority is to minimise the effects and if possible find alternatives to job losses.

"We will resist any enforced redundancies. We will look to see if we can work with the company on this."

Both union representatives expressed the fear that the job cuts were the beginning of the end for the company in Dundalk. A meeting has been arranged between the company and the group of unions next week.