240 jobs saved in E6 thanks to Gov payroll support

Cookie_Monster

Two hundred and forty jobs are to be saved at the Element Six plant in Co Clare as part of a rescue plan for the facility.

The industrial diamond manufacturer announced last month that it was ceasing manufacturing and distribution operations at the plant with the loss of 370 jobs.

However, the company has now given its backing to a restructuring plan following two days of negotiations in London.

At least 240 jobs will be retained in Shannon as a result of the decision.

Element Six says it hopes all parties can work closely together to agree and implement the plan, which is being supported by the Government through training grants and temporary wage subsidies.

Granted it's better than having these people on the dole but is it not a bit of a dangerous precedent to be setting

My name is URL

It's stupid

What happens when the subsidies stop?

The companies will still up and leave..

Mollywolly

I heard about this subsidy on the news. The way that the number of redundancies is increasing, the kitty that they've got for subsidies won't last long

netwhizkid

It is delaying the inevitable, however considering that the gov will be able to claw back PRSI, Income Tax and all the VAT and other miscellaneous taxes from the workers spending there wages I would say the government would still be getting something back from the workers rather than just doling out money on the dole. It is not great but a better option for everyone than they becoming unemployed and going onto the dole. At least this way they are getting a percentage of the private money in tax rather than the gov paying for everything.

General Zod

E6 is in an industry that can certainly turn around quickly at the first signs of the end of the recession, it's worth the risk.

Euro_Kraut

The new subsidy scheme annoucned this week works out at approx €9,100 per worker over 18 months. The Dole costs circa €10,200 per worker per annum.

irelandrover

For me its a great idea. Keeps people off the live register. They spend the same money as they would by paying out the dole but they recoup some of it with taxes. Keeps morale up in the country if people are still working. Keeps the company in Ireland and gives incentive to other companies to stay in Ireland during this hard times. I really dont see a down side to this.

Kradock

To me it shows long awaited iniative by the Government .

The_Minister

Cookie_Monster wrote: »

Granted it's better than having these people on the dole but is it not a bit of a dangerous precedent to be setting

http://conductunbecoming.wordpress.com/2009/04/09/negativetax/

There's a decent argument for a negative income tax, or possibly wage subsidies, it's not necessarily a bad idea just because FF came up with it.

Biggins

All very well and good luck to them, I just hope some gobschite in the EU will not come along and start spouting EU regulations in reference to unfair business and competition practise.
Lord knows they've tried it before and been successful at stopping the state intervening in funding businesses.

irishturkey

Lets get something straight. Not a single job has been "saved" per se. E6 has been over staffed for about two years. That includes management right down to floor workers. It was managemnts fault that they never rectified this situation. In January redundancies were given out to over 55s. Their package included 6 weeks pay per years service plus statutory. On top of this they were paid up to their 60th birthday. Does that sound like money squandered? This plan was fully concerted from start to finish with specific aims. Protesting workers would be made to look ungrateful and unappreciative. Management would be made to look like heroes for "saving" so many jobs. Yes redundancies were needed, but not 370. I posted the rest of this in the Clare region recently. Its pretty much whats been going on recently. The behind the scenes antics. Already though its clear, management are being heralded as saviours. Its a load of bull... but what would I know, I only work there... for now.

This is where the new HR manager has really has come into his own. If we were getting treated fairly, I'd nearly admire him. After the announcement on Wednesday of last week, a 5 man team went to London to plead Shannon's case. CEO Cyrus Jilla told them to come back with a sustainability plan for the next 5 years minimum. So on Wednesday of this week, the workers were briefed on where we now stand. The plan is being put together as we speak and the same team will return to London next week to hand in their plan. They've told us they won't be returning to Ireland without a definitive answer on Shannon's future, no matter how long it takes. Now just think about all this... last week Shannon had to go. A week later it may not have to happen.

The head of distribution was one of the 80 people being kept on. This despite the fact that the distribution dept was part of the 370 to go. The production planner was being kept on, despite production in Shannon coming to a finish by year end. Anyone smell a fish? The new Operations Manager who was supposedly being let go, claimed to know nothing of the announcement. When briefing us during the week on the trip to London, he said he knew on the Tuesday evening that production and distribution were gone.

So all of a sudden, they're very confident of going to London next week and coming back with a number of jobs, a number in triple digits.

My theory? Shannon was never in doubt. They've used scare tactics to brilliant effect. They've left us backed up against a wall. They'll come back with 150-200 jobs next week but "due to financial constraints, workers will have to have their terms and conditions reviewed". I hope I'm wrong but I don't see it. If you don't like the term and conditions you'll be offered a package to go. I do believe they'll increase it from 0.68 of a week per year. Possibly to 2 or 3 weeks, maybe even 4 if we're lucky. But here's the beauty of their plan. They know how upset people are by all of this. There's people that just want out now. But if they go they'll have to take a hit, if they stay, again, they'll have to take a hit in wages. What option do you have? You could protest to the media... with the result that the company say, "we can't afford any more negative publicity, so its back to square one, we're off to China", or "we offered them jobs, we did all we could, they're being ungrateful". You see the result? The workers who are being screwed are left looking like ungrateful bastards while the management come out smelling of roses.

They've been in contact with Tanaste Mary Coughlan and she's promised her full support for their plan. She's promised the full backing of the IDA and all agencies under her control.

I was reading the Star yesterday and in the editorial it said the management in Shannon are to be commended for their perseverence and maybe the rest of the country could learn from them. Bull****!!

So when its announced towards the end of this week that the mangement have saved x amount of jobs, and they're getting accolades from the government for working so hard, just remember all I've written here. This plan was a preconcieved to cut costs, cut wages and make the people who built that company look like mercenaries.

Whatever kind of job they offer me, I won't be taking it. I have some pride. Some dignity. I won't be selling out. I realise I'll come across as a fool, a stubborn idiot who's holding out for more than I'm worth, thats just me. I know there's more people ready to walk once they're offered a package that reflects the effort they've put in over the years. Element 6 have treated us with total and utter contempt. We won't be believed by the media, its easier to just pick a good guy/bad guy and run with that story. My manager was asked by his boss to try and drive us on a bit and get some work done. His response..."Just give me my fcuking money and let me go".

Indicative of the attitude. I won't be surprised if they can't fill all the jobs they come back with. Let the abuse begin... I know I'm a mercenary,a greedy so and so

Post No Bills

Euro_Kraut wrote: »

The new subsidy scheme annoucned this week works out at approx €9,100 per worker over 18 months. The Dole costs circa €10,200 per worker person per annum.

sorry, fyp good point tho, even if they end up on dole eventually, still cheaper