Management at Tara Mines has said that it will suspend operations on 19 July unless an acceptable solution is found for its future. The company, Outukumpu, has said that it will defer suspension of operations until then to allow for further discussions. The dispute centres around a survival plan put forward by management, which involves changes in shift and bonus structures.
The company's Managing Director said that he will close the company on 19 July, if agreement is not reached with unions on a viable plan for its long-term future. Charlie Brown told RTÉ News, this afternoon, that the deadline was absolute and that the parent company, Outokumpu of Finland, would not support the Mines operations after the date.
He confirmed that the company has formally rejected the Labour Court recommendations issued seven days ago, because the survival plan prepared by the unions would not be competitive in the long-term for the firm. He also reiterated the financial difficulty the mines were going through. Tara made an operating loss of over US$20m last year.
"It is very difficult to be optimistic about Tara's future" Mr Brown said, "July 19th is the final D-Day."
A spokesperson for SIPTU said that shop stewards at the mines would meet tomorrow afternoon at 4pm to consider Tara's statement. The spokesman denied that there had been intensive negotiations with the company since the Labour Court recommendations last week.
