Union hits out at plan to save Element Six jobs

A plan that could save 160 jobs at international diamond giant Element Six was tonight criticised by unions.

Officials said members felt angry and betrayed at revised redundancy terms offered to 210 workers in Shannon, Co Clare, who still faced the axe.

Tánaiste Mary Coughlan had earlier welcomed confirmation that management had accepted a restructuring plan that could save some of the 370 under threat staff at the mid-west facility.

She said its implementation would not be without challenges for management and workers, adding that protecting the greatest possible number of jobs in the long-term must be the priority.

But Siptu and the TEEU union criticised the redundancy offered, which stands at 2.5 weeks pay per year of service plus statutory entitlements, capped at one year’s pay.

“The sense of anger and betrayal in the workforce, many of whom have served through thick and thin, is palpable,” said Mary O’Donnell of Siptu.

“The union committee has advised management that in the light of management failing to deliver on our agreed position, they cannot give any assurance of the co-operation of the workforce.”

A general meeting of members will be held on Monday.

Last month Element Six announced cuts at the mid-west facility stating its Irish operation was the most expensive in the world. It planned to hold on to just 80 workers in research, administrative and customer support roles.

However, management at the site revealed they have devised a sustainability plan – with the backing of executives – which could cut the number of redundancies and improve redundancy terms for those affected.

General manager Ken Sullivan said the plan will require a comprehensive overhaul of work practices and a strong productivity drive.

“Importantly, Government have committed additional support in the form of training grants and temporary wage subsidies to support the plan for which we’re extremely grateful,” said Mr Sullivan.

“Hopefully all parties can now work closely together to agree and implement the Plan quickly over the next few weeks to avoid the wind-down scenario.”

Cyrus Jilla, CEO of Element Six said given the extremely regrettable closure decision, he was delighted at the local management team plan.

“We recognise the excellent capabilities we have in Shannon, but we were only prepared to retain operations if they could be competitive and sustainable for the long-term,” he added.

“This plan achieves that goal.”

Elsewhere, politicians welcomed the deal that was stuck between management and executives.

Mayor of Clare Tony Mulcahy said the priority for everybody concerned must be to ensure the maximum possible number of jobs are protected.

“I warmly welcome the news that Element Six has given local management its full backing for a new plan, which is aimed at safeguarding jobs at the Shannon facility.

“The Government’s commitment of providing additional training grants and temporary wage subsidies to support the restructuring plan is a positive step and one that will ease the burden for those workers who will lose their jobs,” said the Shannon-based councillor.

“I now urge company representatives and those workers who are to be made redundant to carefully consider all possible options to secure a satisfactory redundancy package over the coming weeks.”