Kostal axes 100 jobs in desperate survival bid

UNEMPLOYMENT in Mallow has doubled in the last year it emerged yesterday as one of its biggest employers axed 100 jobs and announced reduced working hours in a desperate bid to save the plant.

The Cork staff of Kostal, who returned to work on Monday after a three-week Christmas shutdown, were called to a briefing at 8am and told that 100 jobs will go before the end of next month. Kostal, which has made components for Mercedes Benz, BMW, VW, GM, Ford, Nissan and Volvo in the north Cork town since 2001, announced before Christmas it was letting 30 staff go.

But it told staff yesterday it wants a further 70 redundancies. While job loss details and redundancy terms will be confirmed at a meeting with SIPTU on Monday, it is understood the company wants to cut 40 jobs from production and 30 from administration.