PJ CARROLLS STAFF ANGRY AT DECISION TO CUT 78 MORE JOBS
LOSS OF EXPORT ORDERS AND DECLINE OF DOMESTIC MARKET PUT FORWARD AS REASON December 1997
ANGER felt by workers at the P. J. Carroll tobacco plant in Dundalk, not just at the loss of 78 jobs, but at the manner in which the redundancies are announced, is expressed by union leaders.
They meet management for the first time to discuss the prospect of the Dublin Road workforce being cut in half.
The loss of export orders and a decline in the company’s share of the domestic market are cited by Carroll’s as the reasons for seeking redundancies.
‘ The reorganisation is designed to address uncompetitive cost levels at the plant which have made its cost of production among the highest in Europe, and been the principal cause of the loss of substantial export orders,’ says a statement.
Unions are angry ‘at the lack of consultation, which denies the workers the opportunity to contribute, as stakeholders, in addressing the problems that the company now states it is encountering.’
A statement continues that management agrees in principle to the unions’ proposals, made prior to the announcement, to work in joint forum in dealing with the future viability of the plant in Dundalk.
‘ The unions are adamant that any savings or capital generated locally should be retained by the Dundalk plant as an investment in job security.’
Should all 78 redundancies go ahead, fears are expressed about the long-term future of the facility, as the cuts would leave just 67 employed there.
Also, it would take out an estimated £1.4 million from the local economy in lost earnings.
A stunned workforce is told that the redundancies would be achieved through a voluntary parting and early retirement programme.
P. J. Carroll’s is one of the town’s oldest industries, started by Patrick James Carroll at 38 Church Street in the 1820s, which less than two decades ago employed around 1,100 people.
This number drops to around 850 by 1985, and is further cut back by the most recent major batch of redundancies in 1993 when 100 are let go.
Carroll’s is noted through the years for paying its employees top wages, and offering working conditions and benefits to compare with the best.
The latest announcement more than halves the number left.
In a statement, ‘ the company expresses its regret at the loss of employment involved, but says that it is an essential step in securing a positive future for the company and its employees in Ireland.’
The failure of the company to diversify away from its core cigarette manufacturing base is pinpointed as one of the reasons for its demise, though it hasn’t always been Carroll’s fault.
Perhaps the most promising opportunity is one which, sadly, just doesn’t get off the ground.
In 1979, Carroll Industries plan a joint venture with Nippon Electrical Company of Japan to build a plant to supply digital equipment for the Department of Posts & Telegraphs, initially employing 230, and around 600 as exports grow.
However, the government contract goes instead to a French firm.