Friday, September 20, 2024

More than 300 jobs to go as Offaly company set to close

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More than 300 people working at Cardinal Health in Tullamore, Co Offaly, are being made redundant following the company’s announcement to close its plant by spring 2026.

Staff and union members were informed of the decision at a meeting this morning.

The company closed operations at the site yesterday when it called the staff meeting.

Staff were told the company plans to consolidate production from their Tullamore facility to other facilities within their self-manufacturing network in March 2026.

In a statement it said: “Commercial activities in Ireland will not be impacted by these plans. This decision is part of our regular assessment of our global business, manufacturing and supply chain operations to ensure we are able to meet the evolving needs of our customers, the industry and our business.”

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Employees who had attended the meeting left shortly after 11.10am without speaking to the media.

It is understood staff have been offered a full redundancy package of six weeks pay per years of service plus two weeks statutory.

SIPTU, which represents 280 employees at the company, did not confirm what was offered to staff, but did confirm that it is now entering a 30-day consultation period with the company.

SIPTU Industrial Organiser Ashling Dunne said staff have gone home for the rest of the week and will return to work on Monday.

Ms Dunne said this has been a global decision and said she understands that manufacturing will potentially move to Costa Rica or Thailand.

Minister for Enterprise Peter Burke said he has been engaging with Cardinal Health and will continue to work with management and staff on “current and future possibilities”.

He said every effort will be made to identify alternative employment opportunities for the staff affected by the company’s announcement this morning.

Fianna Fáil MEP for Midlands-North West Barry Cowen said he was unaware of the company’s plans before the announcement was made.

He told RTÉ’s Drivetime: “Nor had any other public representatives or people in the locality, it is a huge disappointment… [a] big blow to the town.

“Thankfully, it is a phased closure that affords time space, and opportunity for I and other public representatives, the Department of Enterprise and for local stakeholders to work with the workforce in order to ensure that every support and effort is given to them to find alternative employment.”

Staff were giving a “guarded welcome” to the commitment on the package, he said.

“Negotiations and discussions will commence next week in that regard,” Mr Cowen added.

He said the proposed package appeared to reward the dedication, service and commitment given by the staff.

He said Ireland had to address the cost of doing business, especially energy costs when reflecting on this loss.

In a statement earlier, Mr Cowen said he had requested an immediate meeting with Minister Burke and Minister of State Dara Calleary.

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Chair of Offaly County Council Tony McCormack said he had spoken to IDA Ireland about finding another employer to move into the plant as soon as possible.

Speaking on RTÉ’s News at One, Mr McCormack said: “While we are losing these jobs today, I would be hopeful that the IDA would be able to fill that plant with another medical device company in the long term.

“The job market here in Offaly is quite buoyant at the moment, I would be hopeful that most of those people will get employed very quickly.”

Mr McCormack said that in the short term, if employees need to up-skill or re-skill to transition, the Government has offered its full support.

He said he spoke with the Tánaiste yesterday and he confirmed any Government agency that could support the workers would do so.

“That plant has been open for over 40 years now, and it came to Ireland I suppose, when we were in the middle of a recession, and they were well sought after jobs and good jobs,” he said.

“And the staff that are there … they always have a very loyal staff, and a lot of them are there for a long, long time.”

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IDA Ireland said it is very disappointed by the news.

“Our thoughts are with those affected by the decision and we will continue to engage with the company as well as regional and national stakeholders to support those impacted and seek alternatives investment for the site,” it said

The company was originally set up as Sherwood Medical in 1982 but has changed hands multiple times over the years and is now owned by Cardinal Health.

At its height, over 600 employees worked at the site, and it has been a huge contributor to the local economy.

In 2012 there were 150 job losses, and over the years the company has also sought voluntary redundancies.

Laois-Offaly TD Charlie Flanagan said it is a “black day for Tullamore” as news that Cardinal Health is to close was confirmed.

He said that although much can happen between now and when the plant closes to “soften the blow”, it is still a “huge setback to economic and social life of Tullamore”.

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