Voluntary redundancies may secure Iralco"s future

Staff at Iralco return after a fortnight"s holiday to learn that liquidators have all but secured a buyer for the Collinstown Plant.The Joint Liquidators of Iralco, John McStay and Tom Rogers of McStay Luby, announced on Thursday morning, 31st that Athenry based manufacturer, C&F Tooling Limited has conditionally agreed to buy the business and assets of Iralco for an undisclosed sum.But although this sale, if successful will secure a majority of jobs, an inevitable requirement will be voluntary redundancies.John McStay, McStay Luby said in a statement to the press:'We welcome this proposal from C&F. This is another step forward in a process which commenced when we were appointed as liquidators in April. We have continued to supply the key customers in the interim and they have been very supportive of our efforts to find a buyer for the business. We have now reached an agreement with C&F Tooling which lays the foundation to secure the majority of the jobs.'Before going to the press, the liquidators outlined three critical matters on which the sale to with C&F Tooling was dependant. They included final commitments from customers in respect of future orders, the transfer of applicable environmental licences and voluntary redundancies.'The final requirement goes to the heart of why the company found itself in financial difficulties. All of the prospective buyers, who reviewed the business, including C&F, were clear that for the Iralco business to have a future in Ireland operating costs need to be reduced to a level which allows the business to trade profitably.'For that reason it is, as I outlined to the workers" representatives, it is necessary to secure some redundancies on a voluntary basis and a number of changes to the ongoing work practices. Without these two elements there is, in my opinion, no alternative way to secure the future of the business and the employment.The liquidators warned that discussions with the workforce needed to be concluded without delay.'While the customers have been supportive they have of necessity been seeking to secure alternative sources of supply. It is unrealistic to expect them to delay putting those alternatives into place if we are seen not to act quickly now that a buyer has been secured,' they said.'C&F have indicated their strong wish to develop the business. This proposal will secure the majority of the jobs and there is a need for significant work practice changes.'While the redundancies are regrettably inevitable the hope is that it will be possible to secure the required agreement on a voluntary basis.'Critically, the work practice changes must also be agreed now as they are crucial for the future viability of the business and without them there will be no investment,' Mr McStay concluded.Iralco, which employs approximately 400 people in Collinstown, Co. Westmeath, provides turnkey solutions to the automotive industry in respect of their requirements of decorative and functional trim. It is one of the longest-established manufacturers in Ireland and was set up in 1964 by Franz Pohl, a German entrepreneur. At one stage it employed 900 people and its customers are some of Europe"s best-known car manufacturers, including Audi, BMW, Ford, Seat, Volvo and Jaguar.Workers at the plant were informed on April 14th that two liquidators, John McStay and Tom Rogers, had been appointed by the High Court to wind up the company.The county manager Danny McLoughlin, said at the time that the effect on the northwest part of the county and the neighbouring counties of Cavan, Longford and Meath could be 'devastating', as the company provided wages of €8 million in a catchment area with few other sources of employment.UNITE shop steward Andrew Elder said that there will be a full meeting of the entire workforce in Iralco within seven working days, perhaps as soon as this weekend. Mr Elder described how important the latest news was for the area:'This is great for the people employed by Iralco, their families and the businesses in the surrounding areas who rely on the business generated by the large number of people employed at the plant.'We will work closely with the new company to build a long-term sustainable future for Iralco and its employees.'Fine Gael councillor and Fore resident Frank McDermott was delighted with the progress made by the liquidator; ' I commend all those involved in what are difficult circumstances and difficult times to acquire a prospective deal.'There will of course have to be changes in the complement of workers. But in my book, as it is in most peoples, half a loaf is better than no loaf at all.'Cllr Paddy Hill, who has family members employed at Iralco, also expressed hope at what he described as welcome news for the area:'It is of the utmost importance to the area that Iralco"s future is secured. I hope that agreement will be reached between the workers and the new buyer and that all the resources available to the Government are brought in to help the workers at the plant. To advise them and to support them at this time.'