Further 240 jobs lost as manufacturers feel pinch

THE haemorrhaging of manufacturing employment continued yesterday with almost 240 jobs lost in Limerick, Galway and Kilkenny.

The biggest loss was in Galway where Thermo King, which manufactures temperature control systems for vehicles, announced it was to cut its 600-strong workforce by 110.

“The speed and the impact of the economic slowdown, combined with the decline of the euro against the US dollar is unprecedented,” said company president Ray Pittard.

“Such events demand a response and the realignment of our people and resources. We believe that the proposed reductions are essential to safeguarding the long-term viability of the business.”

He said the measures were intended to improve both competitiveness and profitability in an effort to offset slowing end-market activity.

In Kilkenny, meanwhile, NN Euroball said it was shutting down, on a phased basis, with the loss of 70 jobs.

The US-owned ball-bearing manufacturer had been operating in the city since 1997.

It blamed the closure on the slowing demand in the automotive industry.

This should have been the company’s busiest period but orders had been in decline since October. Production will cease in 2009 when the majority of staff will be made redundant.

Finally, in Limerick, 59 jobs are to be lost at Filtertek BV, a manufacturing company based in Newcastle West.

The company said recent economic factors affectedits ability to provide cost-competitive products to some of its customers.

Labour’s employment spokesman Willie Penrose said the Government needed to take responsibility for the loss of jobs. “It is time the Tánaiste and Minister of Enterprise, Trade and Employment became proactive in identifying issues that industry faces and in putting together a plan of action that will enable companies to ride out the current storm.

“Minister Coughlan may argue that the slowdown in production is part of a worldwide problem which is out of their control.

“While there may be an element of truth in that, it shouldn’t be an excuse to let the Government off the hook with regard to those elements of the economic equation they do control.”

Mr Penrose noted that despite the Government bailing out the financial services industry, small businesses were finding it harder than ever to secure finance from banks.