Unions to meet with CG power bosses

 

“The writing was on the wall. Things had picked up a bit but you could almost tell something like this was coming down the tracks,” one worker said, reacting to the announcement last week by Crompton Greaves (CG) Power Systems that the local manufacturing facility is to shed at least 50 jobs in the coming months.

Through a ‘Restricted Voluntary Severance Program’, CG Power, formerly Pauwels Trafo, is looking to reduce its existing workforce from 434 to 384 at its plant on the Dublin Road in Cavan Town.

‘This reduction will apply across the entire organisation,’ a statement from the company read.

The programme of redundancies, it states, is designed to “reduce our costs” and make the organisation more “sustainable and successful” in meeting the needs of employees, customers and wider stakeholders.

The business had rebranded to match that of its parent company 'CG' in 2009, after it was acquired by the Indian engineering multinational in 2005. The company's roots in Cavan go back to 1977.

CG Power Systems Ireland says “significant effort” was put into considering “alternatives” before deciding to realign the business in a bid to “gain new customers and market share”.

It’s understood all employees may apply for redundancy.

 

 

Consultation with unions

The company is entering a consultation phase with unions and staff, which will last for period of at least 30 days.

The first of those meetings is expected to take place later in the week.

Denis Sheridan of SIPTU told The Anglo-Celt that the first priority of the impending negotiations would be to minimise the number of redundancies sought by the company. “We will be engaging with CG Power constructively to minimise the hardships caused by this announcement and everything will be done in that regard to support the interests of the employees at this time,” he said.

“CG Power Systems fully intends to continue to play an important role in Cavan and the surrounding region both in terms of employment and through its local sourcing activities. This program will ensure the competitiveness of the Cavan operation well into the future.”

The employee with whom the Celt spoke, who declined to have their name printed, said many had hoped, after concerns over redundancies were dismissed last year, that the worst for the company's future had been averted.

Just over 12 months ago news that CG Power had sought to place employees on a three-day working week emerged amid ongoing uncertainties over Britain's imminent exit from the EU and US President Donald Trump's planned economic policies.

The cut in hours mirrored that implemented in mid-2011 during the worst of the economic crash, when the company cited reasons attached to “adverse trading conditions” and a downturn in sales.

The employee said: “The orders aren't there like they use to be, I think everyone knows that. It's frustrating. But it'll be harder for some people who have been here years to decide what they'll do. Nobody wants to lose their job because let’s face it where else will we get work here in Cavan? You talk about a two-tier economy - a lot of these guys have families and travelling to the likes of Dublin everyday looking for work isn't going to be an option.”

In her own statement, released just minutes after CG Power's announcement, Minister for Business, Enterprise and Innovation, Heather Humphreys revealed she, Government and IDA Ireland officials had “engaged intensively” with the company but failed in halting the proposed plan.

“Unfortunately, the company has informed us that due to increasing cost pressures, they have no option but to take this difficult decision.”

She added that assurances had been given by CG Power that the measure was being taken as part of a “wider effort” to put the local plant “back on a sustainable footing” and ensure its competitiveness into the future.

The Department of Employment Affairs and Social Protection is expected to be on hand during the redundancy process to offer every available support to those staff leaving but looking to reskill, upskill and seek new employment.

“While today’s announcement is very disappointing, the company have made it clear that they fully intend to continue to play an important role in Cavan and the region in the years to come, and my Department, together with IDA Ireland, will do everything it can to ensure the future success of this operation.”

Her disappointment was shared by fellow party member, Cavan Senator Joe O’Reilly who said he would be supporting actions to increase job creation across Cavan.

Management at CG Power in Cavan declined to comment further when contacted by the Celt this week.