Cardinal Health in Tullamore could potentially offer its workers eight weeks of pay for each year of employment as it enters into discussions with unions in anticipation of the impending plant closure. The departure, which is planned to be gradual over the next year and a half, will likely result in around 315 people becoming redundant. The firm, which manufactures medical devices, released a statement to its employees last Thursday, expressing its intention to cease operations at the plant, and possibly shift some of its production to Mexico and Costa Rica.
Siptu union officials are preparing to meet with Cardinal Health on Tuesday to negotiate the redundancy terms. While no agreement has been finalised, the company’s management has hinted at a redundancy package similar to a previous one. This could offer employees six weeks of pay for each year of service, in addition to the standard two weeks’ redundancy payment per year, although there might be limits on the total amount, depending on an employee’s duration of employment.
Contact with a Siptu representative had not been successful, as were attempts to reach out to Cardinal Health.
These discussions are to take place in the wake of Cardinal Health’s $100 million (€90.2 million) dividend withdrawal from its prime Irish unit this year. This could escalate worker expectations for a generous redundancy package.
In related news, discussions are ongoing between unions and management concerning the redundancy terms at the BD medical technology plant in Drogheda, Co Louth, set to close down causing 200 job cuts. Sources indicate that these negotiations are likely to reach a settlement in the upcoming weeks.