Bus firm and car components plant to axe 590 jobs

Almost 600 jobs are to be slashed as Dublin Bus and a leading car components firm today announced major cost-cutting plans.

The state-supported company said it would be reducing its fleet and culling staff numbers by 290 in a bid to offset €10m losses it suffered last year.

In a separate move, German-owned Kostal Ireland cut 200 jobs at its plant in Abbeyfeale, Co Limerick, while a further 100 workers will be laid off in Mallow, Co Cork.

The country is already facing near record unemployment with 300,000 people expected to be out of work in the coming weeks.

Cuts at big employers Dublin Bus and Kostal follow 1,900 lay-offs at Dell and fears for the future of up to 1,500 workers in Waterford Crystal and Tara Mines.

Dublin Bus said it made a profit of €4.7m in 2007 but the economic downturn led to the company losing millions last year.

It will cut the fleet by 120 buses and staff by 10% including executive, clerical, operations and maintenance positions and the national pay award has been put off.

Dublin Bus warned of a sharp decline in passenger numbers.

“Dublin Bus has a responsibility to manage its finances and to take immediate appropriate action to safeguard the economic and financial stability of the company,” a Dublin Bus statement said.

Meanwhile, management at the German-owned car components firm Kostal Ireland insisted it had to make the cuts to stay in business in Ireland.

Karan O’Loughlin, Siptu’s representative at Kostal, urged the Government to step in and assist the country’s ailing manufacturing industry.

“Surely the general population must be asking themselves how the economy has fallen so far in such a short time”, she said.

“It is only 18 months since the general election, when the Government told people not to trust anybody; that they were the only ones capable of managing the economy. This is the same economy that is now disintegrating around us.”

Kostal, which had 1,100 workers on its books at the end of last year, is the largest employer in Mallow.

Despite the job cuts, the company insisted it would press ahead with a €19m investment package for its Irish operations this year.

Michael Genster, Kostal Ireland managing director, blamed the global downturn in the car business and said that the cuts were in line with a drop in sales.

“Kostal regrets having to take the decision to reduce its workforce but unfortunately this decision had to be made with the long term future of Kostal Ireland in mind and in order to ensure that Kostal can continue to operate competitively,” Mr Genster said.

It is understood the company, which saw a 30 per cent drop in business, is planning to cut employees’ hours down to a three-day working week every second week until the end of March as they hold talks to secure the redundancies.

Kostal supplies some of the biggest names in motoring including Mercedes Benz, BMW, Volkswagen, General Motors, Ford, Volvo, Nissan and Toyota.