Published: Thursday, 3rd January, 2008 12:00am

Iralco moves to reassure workers

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Over four hundred workers at Collinstown automotive factory, Iralco, have been left wondering about their job security, after the company said it could only pay a five per cent wage increase if staff worked an hour longer every week.

In what many staff fear is a `rescue mission` for one of the county`s biggest employers, Iralco`s management has informed workers it can only afford to pay the increase if employees increase their working hours.

Workers now fear that if they don`t agree to the company`s demands, the factory could start winding down operations.  Iralco`s declaration, made following a meeting at the Labour Relations Commission last week, informed employees that the company wanted to make a concerted effort to bring the company back into profit.

However, employees must make a `Yes` or `No` decision by February 29 next on the question of the extra hour, with a negative preference possibly leaving the company with no option to downsize or close completely.

A number of employees who contacted the Examiner this week were extremely fearful for their jobs and the company`s future. “They have not come out and said `closure`, but you could read between the lines,” stated Regional Industrial Organiser for the ATGWU, Peter Kenny.

In a statement to the Westmeath Examiner, Iralco management said:“We have a plan and strategy in place to take Iralco to 2010 and beyond. We have communicated this to all our employees. We are awaiting their feedback and acceptance of this plan before the end of February.”

Iralco has not been able to contribute to either the Sustaining Progress 1 and 2 pay agreements over the past few years and has been in constant negotiations with trade union, ATGWU in relation to the most recent pay agreement.

Mr. Kenny also said that there have been “long protracted negotiations over the past twelve months” with the company.  “This resulted in the Labour Relations Commission becoming involved and an assessor was appointed to look at the company books. Iralco had offered to pay 5pc. An assessment was done under the auspices of the LRC and the assessor found that the company was not making any sort of significant money and so their offer was upheld,” Mr. Kenny explained.

However, at a hearing of Labour Relations Commission on February 12 last, Iralco management withdrew its 5pc offer and announced it wished to make a statement to its employees.

Workers were informed the following day that the company would pay 5pc of the National Pay Agreement from January 1 for one hour`s extra pay. It also spoke of introducing an improved operation performance bonus scheme, which could produce a further 2pc increase for employees.

Employees are holding a general meeting this Thursday, February 21, with its union, to discuss their options.  The company has said that it is offering these terms in an effort to bring the factory - the biggest employer in the North Westmeath area since its inception in 1964 - back into profits, setting a timescale by 2010.

“The fears from people and workers are probably sound enough. Iralco haven`t said that they are closing, but they said that we have to make a decision on their offer by February 29,” the ATGWU regional representative stated.

“The real problem is that I don`t know if members will want to accept this offer. It`s a hard bullet to bite. It all depends on what the workers decide - we will have our meeting on Thursday and then people will be asked to make a decision afterwards,” Mr. Kenny added.