Town shocked as electrical company sheds 225 jobs

AN ELECTRICAL company, which announced yesterday that it is to shed 225 of its 805-strong workforce, said it would do everything in its power to ensure the plant remains competitive and prevent further cuts.

Workers and business leaders in Carlow are still reeling after the announcement by the Braun Ireland plant on the edge of the town.

The size of the cut came as a major surprise for the busy industrial hub and to staff at the 805-job plant.

Cuts will begin immediately and the last remaining staff among the 225 to lose their jobs will be let go in January. Union bosses at SIPTU will begin immediate negotiations with the company in the coming days in a bid to reduce the number of cuts and work out a selection procedure.

SIPTU’s Mike Jennings said while the union had heard rumours about job cuts, nobody thought so many posts would be lost.

“The likely breakdown is that 135 permanent staff will go and the remainder will be among the temporary staff. We are very disappointed,” Mr Jennings said.

“We will start negotiations now on trying to reduce the cuts and see who will go.

“We will also be negotiating a compensation package for our members,” he said.

Tánaiste and Minister for Enterprise, Trade and Employment Mary Harney said she was extremely disappointed by the news of job losses at Braun.

The Tánaiste’s priority now is to find alternative employment for those who will lose their jobs.

On a brighter note, she said the IDA was investing some 8 million in the new 70-acre Carlow Business and Technology Park, which is on schedule for completion by the end of the year. It is hoped that the site will provide alternative work for those being laid off over the coming months.

“IDA Ireland has also been working closely with the Carlow Institute of Technology to enable the correct mix of courses to be available to the new industries which the Government is seeking to attract to the area.

“In addition, FÁS will interact immediately with the Braun workforce to ensure that they have the skills

necessary to avail of alternative employment opportunities,” she added.

“Braun has been a much valued employer in Carlow for many years and still employs over 500 people.

“The company will continue to make a major contribution to the local economy in the future.”

In a statement, the company said it regretted the job losses, but would be aiming to ensure that manufacturing costs at Carlow remain competitive, ensuring the remaining jobs are sustainable for the future.

Almost half the planned reduction involves temporary staff, who traditionally stop working at the end of the summer.

Fine Gael TD for Carlow Kilkenny, Phil Hogan, described it as a major blow.

“It is certainly another indication that the chickens are coming home to roost as far as the Government is concerned on the competitiveness of the Irish economy.

“We have seen costs increase at an enormous rate over the past while in terms of labour and insurance costs. All of these issues are coming to bear on companies such as Braun who are under pressure.

“It is a very bad day for Carlow and a difficult day for Braun and its workers,” Mr Hogan said.