Union leaders meet Element Six

Siptu representatives are meeting management at Element Six today in a bid to agree redundancy terms for the 370 workers who are to be laid off in Co Clare.

The industrial diamond company yesterday announced it was closing its manufacturing and distribution unit in Shannon. It is retaining about 80 jobs in areas such as R&D and support services.

Union representatives condemned the redundancy package offered by the company, which was one week’s pay per year of service on top of statutory entitlements. The company had on previous occasions given six weeks' pay, inclusive of statutory entitlements of two weeks.

“Our members are extremely angry and very disappointed at the company’s approach to redundancy payments. It is not acceptable and we would expect more than six weeks, not less, in the current economic climate when alternative employment is almost impossible to obtain," said Siptu organiser Mary O'Donnell.

“Some of our members have given 30 years' service and have stuck with the company though thick and thin when they could have left on significantly better terms. It is a poor reward for commitment.”

Fine Gael Clare TD Joe Carey called on the Tánaiste to take a "hands on" role and get involved in rescue attempts at Element Six.

"The Fianna Fáil Government was asleep at the wheel in relation to Element Six over the past year. The warning signs were there. While no-one expected yesterday's devastating news, it's now time for Government to take a 'hands on' approach," he said.

He criticised the proposed redundancy packages offered by Element Six as "morally and financially paltry" and said the Government also needed to address this matter.

The latest redundancies are in addition to 200 job cuts in the past 12 months by Element Six, formerly known as De Beers Industrial Diamonds. Up until last year, more than 600 people were employed at the Shannon operation.

The company claims the Shannon facility is the most expensive in its global manufacturing network, which includes plants  in China, Germany, the Netherlands, South Africa, Sweden and Britain.

Staff were informed of the decision yesterday morning. Although they had been expecting job cuts, the scale of the redundancies was far worse than anticipated.

“This decision is the result of a comprehensive strategic review of Element Six’s global manufacturing operations to improve cost competitiveness and secure the Group’s long-term future,” the company said.

“The Shannon operation is the highest cost manufacturing site in the Element Six Group. Despite a series of cost reduction programmes in the past few years, continued production at the Shannon site is no longer sustainable or viable, and the primary business it serves is loss-making."