Concern for 1,000 jobs in southwest

THERE ARE further fears of significant numbers of job losses in the west as concern grows for up to 1,000 jobs at manufacturing plants in Limerick and Cork as well as some 30 jobs in a private hospital in Sligo.

Tánaiste Mary Coughlan has been asked to intervene at car-component manufacturer Kostal, which employs some 1,000 people in Abbeyfeale Co Limerick, and Mallow, Co Cork, if, as expected, the company announces a restructuring plan this morning.

There are also fears for 400 jobs at RR Donnelly in Limerick which is heavily reliant on business from Dell. The company prepares kits that accompany computer packages.

In Sligo, management at St Joseph’s private hospital has confirmed the loss of 30 jobs.

While the Kostal plants at Abbeyfeale and Limerick were making no comment yesterday, staff said they had been told an address on the future of the company would be made simultaneously at both plants at 8am this morning.

The motor industry in Europe, to which Kostal supplies components, is currently experiencing its lowest new year sales in years following the global credit crunch. Workers at the company have been on short time since December because of the downturn in business

Labour Party TD for Cork East Seán Sherlock said Kostal, as an employer of 400 people in Mallow, was as important to the town “as Dell is to Limerick”.

Mr Sherlock said Ms Coughlan, as Tánaiste and Minister for Enterprise, Trade and Employment, should intervene immediately to identify issues facing the automotive industry and put together a plan to enable the sector ride out the current difficulty.

He said that the employment situation in Mallow was extremely serious, with numbers on the live register having almost doubled in a year – from 908 in December 2007 to 1794 in December 2008.

Limerick sectoral organiser with Siptu Karan O’Loughlin said about 600 Kostal employees were represented by her union in Abbeyfeale.

She said that the company was a big employer in the southwest, providing good quality jobs.

Siptu also revealed its members at RR Donnelly had said they had been informed by management of the company’s impending closure in Limerick.

It is feared the jobs will be lost between now and next October as the Dell manufacturing switches to Poland.

In Sligo, St Joseph’s confirmed 30 job losses yesterday.

However, local Siptu branch organiser John McCarrick said it was difficult to see why this was happening when hospital services generally were under such pressure.