Cadbury-owner Mondelez has confirmed plans to close its gum-base production plant in Tallaght with the loss of 45 permanent roles. The company is also to cut 160 jobs at its other facilities in Coolock, Co Dublin and Rathmore, Co Kerry.
Mondelez, which employs more than 900 people in Ireland, said the Tallaght plant will close in early 2016.
The company said the decision to shut the plant follows an in-depth review which found that the cost of production at Tallaght is at least twice as expensive as other similar plants.
“Global demand for gum is declining and the development of a new, superior technology for the production of end-to-end gum products supersedes the current technology in Tallaght, it said.
A total of 45 permanent roles and 17 contracted roles are to be lost and the company has begun a consultation process with employees and trade union representatives.
“Our gum ingredient factory in Tallaght faces too many production cost challenges to be sustainable and, following the development of new, superior technology which is only suited for co location with a finished gum plant, regrettably we see no alternative to the proposal to close this plant,” said Phil Hodges, senior vice president, integrated supply chain for Mondelez International.
The company announced separate proposals for its other Irish plants at Coolock, Co Dublin and Rathmore, Co Kerry, which include cutting up to 160 roles across both sites.
Mondelez said it intends to make a €11.7 million investment in new chocolate making technology at the Coolock facility to concentrate production on core chocolate brands; Cadbury Dairy Milk 8-square, Flake, Twirl and Boost, for consumption in Ireland and the export market.
From the end of 2015 the plant will no longer produce wafer brands Time Out and Pink Snack, sales of which have been in decline for a number of years.
Trade union representatives at Siptu are seeking an urgent meeting with management over the job losses, which they said came as a complete shock to employees.
A spokesperson for the union described the announcement as a complete shock to employees. He said the news that some production is being transferred from the Coolock facility to Poland had angered staff.
Mondelez operates three sites in Ireland with more than €250 million worth of Cadbury chocolate produced here exported every year.
The company’s plant in Rathmore was established in 1948 and the Coolock facility opened in 1964. The Tallaght plant was set up in 2006.
"Following extensive reviews, we have presented separate proposals to employees in Tallaght and also at our chocolate sites in Coolock and Rathmore. We very much regret that these proposed changes would require role reductions," said Justin Cook, managing director of Mondelez Ireland.
“We are committed to working fairly and respectfully with employees and their representatives through the consultation processes that will now commence,” he added.
Fianna Fáil TD Dara Calleary called the job losses a “major setback”, adding that the move would have a negative impact on the local economies in Kerry and Dublin.
“The government are talking up economic recovery while at the same time failing to recognise that many businesses are continuing to struggle on a day to day basis,” said Mr Calleary.
“This latest job loss should serve as a wake-up call for the government. More needs to be done to not only create employment but also protect existing jobs. What the Irish people need is active job creation, not the launch of reports and plans filled with buzzwords”.
Fianna Fáil Senator Averil Power described the job cuts as “a massive blow” to Coolock and the surrounding area, which she said already suffers from high unemployment.
“If there’s a ribbon to be cut there’s no shortage of Ministers to do so, but when there’s hard work to be done in saving existing jobs they’re found wanting,” said Ms Power.
“The Minister must make a last ditch effort to stop these job losses. If that’s not possible, he should set up a taskforce to secure alternative employment for those being made redundant.”
Dublin South West Sinn Féin TD Seán Crowe said the job losses in Dublin and Kerry would have “wide-ranging repercussions” for the families of those working at the facilities.
“The continued departure of traditional industries and the manufacturing jobs they brought has had a devastating effect on Tallaght and its hinterland as they are not easily replaced,” said Mr Crowe.
“A fair deal for these employees must follow this announcement and the Government need to provide them with adequate supports and most importantly explain how they will replace these jobs.”
