In January 2012 Diageo announced it is to invest €153m in a brewing centre of excellence at the Guinness brewery at St James's Gate in Dublin. In conjunction with this investment, the company decided to close the two smaller breweries in Dundalk and Kilkenny with the loss of 110 jobs. The decision to close the two breweries was made by the company on the basis that there is no economic rationale for maintaining two separate facilities not operating at full capacity, with duplication of roles. The Dundalk site is scheduled to close in June 2013 and the Kilkenny site in December 2013.
The company had originally announced the decision to close the two facilities and centralise its brewing activities in St. James Gate in 2008.
I understand that, since the planned closure announcements, a number of employees have taken up roles either inside or outside Diageo and their positions have generally been backfilled by people on short term contracts. This process will continue until the closures take place.
I understand that it is envisaged that there will be a number of voluntary redundancies while the remainder will gain positions either inside or outside Diageo. Diageo are currently working with employees to help each individual find their own best fit position.
Discussions on a number of issues arising from the company's decision to close the two plants are ongoing between Diageo and the trade unions representing the workers. These talks are being facilitated through the State's Industrial Relations Machinery. I would encourage all parties to engage constructively and in good faith in this process. The principle of good faith implies that both sides make every effort to reach an agreement and endeavour, through genuine and constructive negotiations, to resolve their differences.