Threat to 91 jobs at Kingspan as dispute escalates

A total of 91 jobs are under threat at Kingspan's headquarters in Kingscourt, following the issuing the protective notice to production and engineering staff at the plant. The 91 workers are due to be laid off on 30th April in the latest development in a dispute between management and the SIPTU union, which has been going on for the past 18 months. The dispute centres on the company's survival plan which, it says, is absolutely critical to the viability of the plant, but claims the union has refused to co-operate with its implementation, saying it would mean massive pay cuts. Workers at the plant were meeting yesterday (Tuesday) with union officials to discuss the company's decision. There are currently a total of 131 people employed in the Kingscourt plant but the latest move does not affect employees such as sales, administrative, customer support and finance staff. In a statement, the company pointed out that, in December 2008, it commenced a consultation process to put the insulated panels plant at Kingscourt on a competitive footing in the international marketplace. The Kingscourt plant accounts for approximately three per cent of the group's worldwide sales. According to the company, in order to remain viable, the plant must become competitive to enable it achieve sales in the international arena. Last December, the company received a decision by the Labour Court supporting the implementation of a 10-point on-site survival plan on 18th January. "Since then, repeated efforts to engage in an agreed implementation process have proved unsuccessful, including the commissioning of two independent reports, which confirm the necessity of the survival plan," the statement said. "This has taken place against a backdrop of growing losses at the plant, which incurred an operating loss of €1.07 million in the period January to March 2010. As such, the plant has become unviable to operate and it is with regret that we have no alternative but to enact our protective notice which will result in all production and engineering grades being laid off from 30th April," Kingspan said. The company said staff in other areas would not be subject to protective notice including those in the sales, customer support, finance and administration functions. "In order to minimise further disruption to the overall business, plans are in place to absorb production elsewhere within the group. As always, the company remains open to engaging with the union on an agenda that has a viable opportunity to secure the plant's future," the statement concluded. Efforts to contact SIPTU in Cavan for comment proved fruitless yesterday (Tuesday).