STAFF were informed on Wednesday morning that the De Beers plant, which has operated in Shannon for 50 years is to wind down operations, as it is no longer cost competitive.
Element Six, which has been described as the backbone of manufacturing in the Shannon Region is set to close with the loss 370 jobs.
In a statement issued, the company says that despite reducing costs at the plant for a number of years, it has continued to lose money and the downturn in the economy has also been a negative factor. Some 80 jobs will be retained in the global customer service, which will continue to operate.
An informed source told the Limerick Post that staff are devastated by the closure, “Although people were expecting it, many just broke down and started crying uncontrollably – it was terrible.”
Some employees who did not take up the offer of voluntary redundancies last year are now bitterly regretting that decision.
A source said: “we were offered a large sum in February but many of us waited for an upturn in business and when this didnt happen, some people went back to management but the offer was no longer on the table.”
Staff will now have to accept one week’s pay per year of service on top of statutory redundancy, which has been criticised by local SIPTU organiser Mary O’ Donnell.
Sean Kelly, Fine Gael MEP, told the Limerick Post he is devastated by the news.
“This is appalling – we’re now paying for mistakes made over the last ten years and everyday it’s bad news, which is destroying people’s morale.”
He said he will now be working at European level to try and prevent further job losses.
“We will have to access funds from the European Globalisation Adjustment Fund which is aimed at funding regions that have been traumatised by job losses due to the global downturn”
A shocked reaction comes from the Mayor of Shannon, Sean McLoughlin.
“This is like a sudden death in the town manufacturing here is now in complete ruination and these job losses will have a huge knock-on effect in the region as De Beers was one of the backbone companies in this town and region, including Limerick city.”
