Cork has been dealt another major economic blow with the loss of 140 jobs at Smurfit Kappa in Togher. Yesterday (Wednesday, July 1) the company announced that it had commenced discussions with its employees and their representatives regarding a rationalisation of its operations at Togher which will result in the loss of up to 140 jobs.

It said that the decision is the result of the major downturn being experienced in the Irish manufacturing industry which has affected Smurfit Kappa's business due to the consequent significant loss of volume. Cork politicians described the news as a "massive blow to Cork" with Senator Jerry Buttimer sayng that Cork is now rapidly becoming an unemployment blackspot and that it is now essential to undertake an audit of companies in Cork city which are currently supported by the IDA and Enterprise Ireland. "This is necessary to assess the track record of these two State agencies in bringing jobs to Cork. But we also need to determine which companies are stable, and which are at risk of job losses," he said.

Fine Gael's Deputy Simon Coveney added, "We cannot allow announcements such as this one to pass without examining in real detail the reason for the cutbacks announced. Any job loss announcement needs to be examined in the context of the need for new Government policy to improve our competitiveness and making the business environment more attractive in Ireland. There is much that can be done to protect existing jobs by reducing the cost base for doing business in Ireland and targeted business friendly policies." Minister Micheal Martin pledged that he will ensure as a local TD that the top priority now will be the workers that will affected by the rationalisation of the plant. "I will ensure that the job creation and training agencies of the State offer them every possible support as they seek new employment. In addition workers should be offered opportunities to re-train and up-skill," he said.

The changes at Smurfit Kappa will come into effect following the conclusion of negotiations with employees and their representatives.

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