UPC Ireland, the new parent company of cable operators NTL Ireland and Chorus, is reported to plan around 350 redundancies from September. Meanwhile, people familiar with developments, say that hundreds of jobs are at risk at multinational operations in Nenagh and Naas.
Some job losses had been expected when the two cable companies NTL and Chorus merged earlier this year.
A statement from the company said that certain activities currently undertaken by NTL Ireland will be transferred to Chorus and vice versa.
The company added that it may be able to create up to 140 new positions in the future
ATGWU officials have been told the NTL call centre in Waterford city, which employs around 110 people, is expected to close.
The company says that its overall objective is to create a strong national operator for television, internet and telephone services and that a major reorganisation is underway.
The combined workforce of Chorus and NTL Ireland is about 950.
The primary areas to be affected are customer care, finance, networks and Chorus Sports Channel.
Procter & Gamble, Nenagh
Procter & Gamble, the world's top personal care products firm with a payroll of 135,000 in 80 countries, is said to be in the process of winding down its skincare products plant at Nenagh, where more than 400 are employed.
The company has been in Nenagh since 1985 when the Richardson Vicks factory was acquired. In 1992, an extension was added to the plant for the production of cosmetics and in 1999, following uncertainty about a European rationalisation programme, the Government approved support from IDA Ireland for a €27m (£21m) expansion programme to bring the headcount to 600 employees at the plant that was to become the group’s European centre for skincare products.
Last December, all part-time positions were terminated and the company cut 75 job cuts in February.
Recently, a spokesperson has said that an ongoing sourcing study, is unrelated to the February job losses.
Procter & Gamble has been involved in controversy about pollution and planning issues during its 21 years at Nenagh's Gortlandroe Industrial Estate.
A closure decision by the giant Procter & Gamble, would be very bad news for the Irish economy.
Northern Food's Green Isle Foods
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| • Established in 1982, Green Isle was acquired by UK Northern Foods in 1996. • Pizza accounts for 65% of Green Isle’s turnover. It has 2 facilities in Naas and one in Longford. About 1,000 are employed in the Irish operations. |
In January 2005, Micheál Martin, Minister for Enterprise Trade and Employment announced a major €22.6m expansion investment by Green Isle Foods Ltd at their Goodfella's pizza and Donegal Catch products plant in Naas, Co. Kildare. The development which began production in Autumn 2005, is supported by Enterprise Ireland and lead to the creation of 130 new jobs from a January 2005 base at Naas, of approximately 630.
Martin said in January 2005 that: "Following extensive market research, Green Isle, with the assistance of an Enterprise Ireland Research Technology and Innovation (RTI) grant, committed R & D funding to investigate expanded pizza production and enhanced manufacturing processes. That research commitment has led to a major expansion which will generate projected sales of €35m and exports of €23.5m over the next five years. The challenge of winning new sales in highly competitive global markets cannot be underestimated. Growing productivity and controlling costs will be critical in achieving and sustaining the competitiveness needed to win such ambitious international sales."
Frank Ryan, Chief Executive Officer of Enterprise Ireland said: "Green Isle's success to date can be attributed to a continual investment in capital, R&D, product innovation, brand development and customer service. The company has a well established and highly innovative sales and marketing strategy, a factor which will be important in delivering the sales and exports arising from this expansion".
Today, Green Isle Foods is also on a deathwatch because of uncertainty and turmoil at its UK parent Northern Foods.
Last month, Northern Foods chief executive, Pat O'Driscoll, announced a radical restructuring of the group, halving its dividend payout and putting 40% of the business up for sale.
Conceding that there had been "a history of the yes culture" in Northern Foods' dealings with its supermarket customers, O'Driscoll said there would be a tougher line on uneconomic business in future as the group battles to restore profitability.
It plans to focus on five core businesses: pizzas, biscuits, ready meals, sandwiches and Christmas puddings. On the sales block are the Smith flour milling unit, cakes, speciality bread, its chilled pastry products division and the NFT distribution arm. These businesses account for about 40% of the group's £1.44bn turnover and employ 9,000 people, 45% of its total workforce.
The sale decision followed a review of the operations. "It's a large and complex business," O'Driscoll said. "We considered changes in consumer tastes and there have been no sacred cows in the process. We have not taken the easy options, such as exiting one business." The slimmed-down operations will be 50% branded goods, including Fox's biscuits and Goodfellas pizzas, and would be far more focused.
The group is the biggest manufacturer of ready meals in the UK and has a reputation for developing new products.
About 75% of Northern Foods sales are made to five customers - Marks & Spencer, Tesco, Sainsbury's, Asda and Morrisons - with M&S accounting for 30%. The group reported a loss of £16.1m in the year to April, after high exceptional costs, compared with a profit of £19.2m the previous year.
Northern Foods says in its 2006 annual report that strong performance in its Frozen Division, offset poor results in other areas. It also noted that in the frozen Pizza category, which represents 49% of divisional sales, continuing revenue was up 12%. With the overall UK market for frozen pizza down nearly 6%, the Goodfella’s brand increased its share to over 26%.
Nevertheless, Finfacts understands that there is a spending freeze in Naas and staff are uncertain about future plans for the operation.
With its parent Northern Foods on a respirator and scrambling for a stable footing, the Green Isle Foods workforce is understandably worried.
