Workers in the Donegal clothing manufacturing company are bracing themselves for up to 800 redundancies as Fruit of the Loom looks to relocate to Morocco.
The Tánaiste Mary Harney, accompanied by Minister for Tourism and local TD, Jim McDaid visited the County Donegal Fruit of the Loom manufacturing plants at Milford, Raphoe and Buncrana. There they met with workers, as well as senior and European executives of the company.
No decisions have been made about redundancies but the Tánaiste believes up to 800 jobs in the t-shirt sector are vulnerable due to cheaper labour at the company’s Morocco plant.
She pointed out that the difference in wages between Donegal and Morocco means,
It is six times more expensive to make the t-shirts in Donegal than it is in Morocco. Clearly the economics of the situation speak for themselves and I can’t stop that, neither can anybody else.
The Tánaiste hopes to maintain as many jobs as possible at its Donegal plants in a bid to minimise redundancies. She wants the company to ensure that when there are redundancies those being made let go will be looked after properly and paid well above their statutory entitlements. Many of these workers are among the lesser skilled who may never get a job again.
That’s as serious as it is.
Unemployment in Donegal is already twice the national average. Services Industrial Professional and Technical Union (SIPTU) are deeply concerned with the situation and will be meeting with the Fruit Of The Loom European directors.
SIPTU Donegal branch secretary Sean Reilly says they have joined with other organisations to establish a jobs initiative in the area to encourage other companies to the region, so if jobs are lost replacement employment is found as quickly as possible.
Chairman and Chief Executive Office of Fruit of the Loom Bill Farley will be meeting with the Táiniste, however is seems redundancies will be inevitable.
An RTÉ News report broadcast on 7 September 1998. The reporter is Eileen Magnier.
