Plant workforce cut to 340 as drugs giant sheds 60 jobs

The giant pharmaceutical company Merck, Sharp, and Dohme is to shed 60 jobs at its south Tipperary plant at Ballydine.

The redundancies, which will not be fully implemented until early next year, will reduce the existing workforce of 400 to 340.

Management is hoping all of the layoffs will be voluntary and has pledged that the redundancy package will contain “highly competitive terms”.

Representatives of SIPTU, which is the main trade union at the plant, met with members of management earlier this week and last night they had a meeting with the workers.

“We will be going back to the company early next week for further discussion and negotiation,” union representative Nicholas Parker said.

“In truth this announcement hasn’t come as a huge surprise because there has been something in the offing for the past few months. However, we are concerned about the number of proposed redundancies.”

Merck, Sharp, and Dohme began operations at the Ballydine plant outside Kilsheelan in 1976, and in the intervening years has steadily increased its workforce to the current high of 400.

This will be the first time in its 28 years in south Tipperary that the company has been forced to lay off staff. A company statement says that the action is required because of a change in production for 2006 and a need to reduce the cost base of their operation in Ireland.

“In an environment driven by increasing competition, cost containment pressures and greater customer demand for value, the company is required to reduce its cost structure and enhance its competitiveness over the long term,” the statement says.

“The reorganisation that we have now confirmed is all about making the Ballydine plant as cost effective as possible, and our objective is to position its operation to continue to compete for new products and to contain our position as a key site for the production of important medicines for the company.”

A four-week consultation period will now begin with the workforce and it will take until early in 2006 for all 60 redundancies to take effect.

Local Fine Gael TD Tom Hayes has expressed disappointment at the impending lay offs and said he will be liaising with management urging them to provide fair and generous severance packages.

“I hope the company will recover from this setback and that the proposed changes will ensure the Ballydine plant’s viability and the sustenance of the remaining 340 jobs there,” Mr Hayes added.