German car parts maker Kostal has announced 140 job cuts at its manufacturing site in Abbeyfeale, Co Limerick.
The redundancies are part of a restructuring of the company’s Irish operation linked to a previously announced decision to transfer production of its On-Board Charger (OBC) products out of Ireland.
OBCs allow electric cars to charge from the electricity grid.
Kostal said it will maintain its presence in Ireland continuing with a range of business activities in Abbeyfeale.
It added that the restructuring does not impact the company’s operations in Mallow, Co Cork.
“Today’s announcement in no way reflects upon the commitment and work ethic of employees at Kostal’s Abbeyfeale site,” the company said in a statement.
“As part of the redundancy announcement, Kostal will now enter into a consultation process with employees and their representatives,” a spokesperson said.
SIPTU said its members have expressed shock and anger at the scale of redundancies that have been announced.
The union said it will fully engage with the redundancy consultation process and secure the best possible outcome available to its members.
“Any redundancies arising from the process will initially be voluntary,” said SIPTU Organiser, Eva Mitchell.
“We are also calling upon state agencies to engage with the community in planning for the creation of future high-quality jobs, which the local economy depends on,” Ms Mitchell said.
