Thousands of jobs are at risk in supply firms

ASSOCIATIONS which represent companies supplying or working alongside Dunnes Stores have warned that thousands of jobs are being put at risk by the dispute.

Already, a number of companies is believed to have begun to lay off staff.

The Irish Small and Medium Enterprises' Association (ISME) said that the "ripple effect" of a protracted Dunnes Stores strike could affect up to 15,000 jobs.

Companies in the clothing and food processing sector would be the main losers, as many of them had "single supplier contracts" with Dunnes, whereby they sold all their produce to the multiple.

A spokesman for ISME said that it was "disappointed" that the Minister for Enterprise and Employment, Mr Richard Bruton, had not as yet offered his services to broker a solution.

"Instead of issuing statements, the Minister should offer his good offices and bring the thing to a speedy resolution. ISME's officers are willing to make themselves available as independent mediators with a view to securing a resolution," the spokesman said.

The Small Firms' Association (SFA) said that 550 companies employing about 8,000 workers here dependent on normal trading with Dunnes. "Already, a number of small companies have commenced laying off staff as a result of today's all out strike. Particularly vulnerable are the small retail outlets based at shopping centres owned by Dunnes Stores or where Dunnes are the anchor tenant."

The association called for the resumption of negotiations or consideration of intervention by "an authoritative third party".

"Closures are inevitable and will commence almost immediately. A protracted dispute will condemn many more small companies to the scrap heap," the spokesman said.