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Dáil Éireann debate -
Wednesday, 4 Apr 2001

Vol. 534 No. 1

Written Answers. - Job Losses.

Brendan Daly

Question:

115 Mr. Daly asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the announcement made regarding the closure of a company (details supplied) in Ennis, County Clare with the loss of 85 jobs; and if she will make a statement on the matter. [10074/01]

The company, which has been in Ennis since 1962, announced the closure of its Irish manufacturing operation on 28 March 2001. The closure will be effective from the end of May 2001 with the loss of 85 jobs out of the current employment level of 87 jobs. The remaining two employees are sales representatives who will continue to service the Irish market.

The company stated that the decision to close is a direct result of a non-competitive cost base in Ireland compared to more cost effective production within the group's other facilities in Malta and China. An additional factor is the impact generated by low cost competitors in a competitive world-wide marketplace.

The FÁS employment services manager for the mid-west region met the general manager of the company on 2 April 2001 and outlined the full range of services that will be made available to the workers. These include guidance and career counselling, matching for job vacancies and the provision of training courses, as required. A FÁS employment officer based in Ennis will be assigned to deal specifically with the company.

IDA Ireland will continue its policy of attracting projects from a complete range of its target sectors, in manufacturing and international services, to Ennis.

Brendan Daly

Question:

116 Mr. Daly asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the announcement made regarding job losses at a company (details supplied) in Shannon, County Clare; and if she will make a statement on the matter. [10075/01]

The company, which was established in Shannon in 1989, laid off 90 of its 187 temporary employees on 27 March 2001. The permanent employment base at Shannon of 535 is not affected. The reasons for the lay-offs are directly associated with the slowdown in the US economy, over stocking of high volume product and a general reduction in demand from telecommunications providers in the US and, to a lesser extent, in Europe.

Officials from the FÁS mid-west region have been in contact with the company regarding the services available from FÁS, for example, guidance and career counselling, matching for job vacancies and the provision of training courses as required. A FÁS employment services officer based in Shannon has been assigned to deal with the company.

Brendan Daly

Question:

117 Mr. Daly asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the announcement made regarding job losses at a company (details supplied) in Shannon, County Clare; and if she will make a statement on the matter. [10076/01]

On 7 March 2001 the company, which has substantial manufactur ing operations in Shannon since 1961, announced the closure of one section of its manufacturing operations in Shannon, its diamond synthesis plant, with the loss of 128 jobs. These job losses are being effected through a combination of voluntary redundancy and early retirement.

The synthesis process is carried out at a number of locations world-wide and a decision has now been made to consolidate this activity in three plants. The underlying reason for the consolidation is competition from the Far East, specifically China, Korea and Japan. Shannon will remain as the company's only plant to process synthesised diamonds – the high value added end of the business. The Shannon company will also continue to host most of the corporate activities of the group. The ongoing staff level will be more than 500.

Officials from the FÁS mid-west region have made contact with the company to offer assistance to those being made redundant. The company is using a consulting group to assist employees in assessing the options open to them. The group has been advised of the services available from FÁS, for example, guidance and career counselling, matching for job vacancies and the provision of training courses, as required. A FÁS employment officer based in Shannon has been assigned to deal with the consulting group in relation to the company's employees.

Shannon Development will work closely with management at the company in its strategy to develop new activities for its Shannon operation.

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