Element Six agrees to improve redundancy offer

The industrial diamond manufacturer Element Six says it will accept Labour Court proposals recommending an improved redundancy deal for employees being laid off by the company.

The firm initially announced plans to close its Shannon factory with the loss of 370 jobs, but later put forward a survival plan that would save 160 of those positions.

The workers, however, refused to accept the plan until improved redundancy terms were offered to the 210 employees who would still be losing their jobs.

Staff members will now have to decide whether to follow the company's lead and accept the improved deal recommended by the Labour Court.

It is understood to include four weeks' pay per year of service, capped at 78 weeks.

This compares to the original offer of 2.5 weeks' pay per year of service, capped at 52 weeks.

“I am happy to confirm that, after deliberating extensively regarding the various options, our executive has today accepted the Labour Court Recommendation in full, which ultimately means we can save additional jobs in Shannon which were going to be lost as per the original wind-down plan announced on July 22,” said general manager of Element Six in Shannon, Ken Sullivan.

“Our chief executive Cyrus Jilla has written to all staff in Shannon today notifying them of this positive development and encouraging them to rapidly accept the recommendation.

“The commitment and flexibility shown in the past two weeks has improved productivity and output and has given the Executive confidence in the Shannon Sustainability Plan. As a result, we have every confidence that the Plan, which we put forward to our executive as an alternative to wind-down, can succeed.

“I would encourage all employees and their union representatives to also now accept the Labour Court recommendation.”