IT now seems certain that the sustainability plan for Element 6 in Shannon will be implemented, with 163 of the 370 jobs that were originally facing the axe, now to be retained.
Members of SIPTU, the largest trade union at the company, have voted in favour of the sustainability plan.
While the TEEU have yet to finish voting on it, a representative said that it is now a “foregone conclusion” that it will be implemented. The UNITE staff group, which is the second-largest grouping, with around 70 members, are set to vote in the coming days but a representative said he believed almost all members would be voting in favour of it.
It had been widely expected that workers would be in favour of the plan after the company agreed to accept a Labour Court recommendation assuring departing workers of a superior redundancy package than that originally offered.
Workers are to receive around four weeks pay per year of service plus two weeks statutory payments. That is far in advance of what was originally offered back in July. Also, there will be extra allowances for those there more than 20 years and people who do not qualify for redundancy will receive at least €7,500.
General manager of Element Six in Shannon, Ken Sullivan, welcomed the recent developments. “We are extremely pleased with this decision which, along with the earlier acceptance of the recommendation by the management and staff groups, now secures the retention of manufacturing and distribution operations in Shannon for the long term,” he said.
“The fact that we are now in a position to retain a significant manufacturing and distribution presence here in Shannon, along with 163 jobs that were going to be made redundant under the original winddown plan announced by our Executive on July 22, is the best possible outcome in the current difficult economic and operating environment and it also ensures a significantly enhanced redundancy payment for those who will be leaving the company.”
Deputy Timmy Dooley said that it was a bittersweet outcome. “Unfortunately, the redundancy has come at a difficult time when there are not many alternative employment options. However, the redundancy package is considerably better than what was originally proposed.”
He praised Shannon staff and management and said the Government had been an important player.
“I believe that the flexibility shown by the workforce and the ingenuity of management must be recognised in what was a very difficult process. I was pleased that the Government played an important role in securing the future of Element 6 through the provision of funding to support employment at the facility as part of the restructuring process.
“Tánaiste Mary Coughlan played an active role from the time the original announcement was made to close the facility. Her assistance was beneficial in achieving this outcome.”
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