Ex-Element 6 workers get unexpected windfall

WORKERS at a Shannon company which let go more than 200 staff late last year, and only narrowly avoided closing its production facility completely, have been rewarded with an unexpected cash windfall.

Unions and management at Element Six (E6) were engaged in a bitter battle last year over the company’s restructuring plan.

The Clare-based industrial diamond manufacturer had threatened to keep just 80 of the 450 jobs if agreement could not be reached. The three unions at the plant had claimed the company could have afforded far more favourable redundancy payments. However agreement was reached and, in the end, 163 of the 370 manufacturing jobs were saved.

Now, those workers have received at least €1,350 each while senior management are understood to have benefited from bonuses of at least €5,000 each and reportedly in some cases, several thousand euro more.

While the company has refused to discuss figures, sources say the estimated cost of the payout is in the region of €700,000 at the Shannon facility alone.

The company has said: “Element Six is happy to confirm that, in recognition of the contribution made by staff in meeting the challenges of what was an extremely difficult 2009, all our staff globally received a bonus in recent weeks.

“Bonus payments at Element Six, like at most companies, are typically dependent on company earnings and while these were down considerably last year, the executive and board decided that a bonus should still be paid to recognise the loyalty and commitment of staff last year.”

The spokesman added: “This was not a local but a global decision but we are obviously very pleased that our staff here at Shannon have been included in this overall bonus payment.”

E6 has also confirmed that it continues to employ former workers who have returned to work at the plant under contract from a recruitment agency. The staff, who were back at work within weeks of being let go, did not receive any of the bonus payments however. Unions claimed at the time that the re-employment of these workers was proof that many of last year’s compulsory redundancies were not necessary at all.

The company has said: “Element Six is currently employing a number of (up to 60) temporary staff, all of whom are former employees of the company and were hired late last year to clear a back-log of orders caused by delays brought about by talks in the lead-up to agreement on the Shannon Sustainability Plan. We have been able to retain these staff longer than anticipated due to improving market conditions so far this year.”