MANAGEMENT FROM industrial diamond manufacturer Element Six is scheduled to continue crunch talks in London today in a bid to save as many as possible of the 370 jobs at the company’s Shannon facility.
General manager Ken Sullivan and four members of his management team yesterday began talks with the group’s chief executive, Cyrus Jilla, and other senior executives at the company’s London headquarters on a rescue plan for the plant.
The talks are expected to conclude today, and the outcome is likely to be presented by Mr Sullivan to workers at the Shannon plant tomorrow.
Ahead of yesterday’s meeting in London, Mr Sullivan declined to comment. However, speaking on the plan last week he acknowledged that there would be job losses but that it was his aim to save as many jobs as possible at Element Six, formerly known as De Beers Industrial Diamonds.
He expressed optimism that he and his management team could “develop a sustainable operation in Shannon and save a substantial number of the 370 job losses announced”.
“We need to think of new ways to create a truly cost-competitive and long-term sustainable operation in Shannon. The group management now expects a comprehensive plan from us for their consideration. If this secures their support we expect to be in a position to meet with employee representatives very shortly thereafter.”
In putting the plan together, Irish management sought the workers’ views on measures to make the plant viable.
Siptu shop steward Murdoch Gleeson said yesterday that the management gave unions no clue as to what the rescue plan contained before making the trip to London. “All we can do now is hope. We know that there will be significant job losses, but we hope that the plant can be saved with as many jobs as possible. It is also important that an improved redundancy deal for the workers who are leaving is secured.”
Last month Mr Sullivan stunned workers when he told them at a general meeting that the parent company had decided to exit manufacturing and distribution at the Shannon facility with the loss of 370 jobs.
However, Mr Sullivan last week secured approval from Mr Jilla to produce a rescue plan that would make manufacturing at Shannon viable.
The Shannon plant is an integral part of Element Six’s global operation, with the latest figures showing that in 2007 some 71 per cent or €249 million of Element Six’s global revenues of €350 million were generated at its Shannon-based company.
Workers are facing severance terms that are only a fraction of what was on offer when it reduced its workforce through a voluntary redundancy programme recently.
With 21 years’ experience, Mr Gleeson said if he availed of redundancy six months ago he would have got €100,000, whereas now he would receive only €35,000.
Clare Fine Gael TD Joe Carey said yesterday: “Time and time again the workers at Element Six have rewarded the company with their dedication and loyalty. This application and loyalty must now be met by the company and the right thing done by the employees at the plant.”