Coca-Cola set to shed 130 jobs after review of logistics

COCA-COLA yesterday announced it is to let 130 staff go as part of a restructuring drive.

The soft drinks company said it had completed a review of its logistics infrastructure “and as a result will be entering into consultation with employees over plans which could lead to a reduction in employment”.

It said the review had concluded that the cost of its logistics operation was exceptionally high when measured against the industry in Ireland and other comparable countries within its group.

“This cost base is not sustainable and decisive action is needed in the interests of the future viability of the business.

“After examining of various options, the most viable solution identified would be to fully outsource logistic services to expert Irish third party logistic providers. Much of the company’s distribution operation is already managed by third party providers.

“Should the company proceed with this solution, it would mean the closure of our current warehousing and distribution depots in the Republic of Ireland.

“Regrettably this would affect approximately 130 employees in the areas of warehousing and distribution in Dublin, Cork, Tuam, Tipperary, Waterford and Killarney.

“The company recognises that this is very difficult news for the employees potentially affected and is committed to engage in a transparent and meaningful consultation process. It will consider and discuss all options that are presented with employees and their representatives.”

Coca-Cola has been bottled and distributed in Ireland for more than 50 years.

Last night, SIPTU branch organiser, John Dunne, said the union would do all it could to maintain the 130 jobs in the Republic.

Mr Dunne welcomed the company’s commitment that no final decision would be taken before it had consulted with the unions representing the workforce.

“Our priority, as always, will be to maintain as many jobs as possible,” he said.

Referring to the high costs cited by Coca-Cola as a reason for considering the move, he said: “Nothing has been decided yet and we have been able to address competitiveness issues successfully in the past. There is no reason why we cannot do so now.”