255 jobs on the way but shock as 165 others axed

255 jobs on the way but shock as 165 others axed

THERE was mixed news on the employment front yesterday, with jobs lost at a pharmaceutical plant in west Cork and an announcement of new jobs for Dublin.
Staff at US pharmaceutical giant Schering-Plough, which is based at Brinny, near Innishannon, were told by management at lunchtime that the work force is to be reduced by 165 to 545 over the next three months.

The news broke just as Enterprise, Trade and Employment Minister Micheal Martin announced that 255 jobs are to be created in Dublin in four separate projects over the next five years.

Schering-Plough said the job cuts are required in response to falling demand for its key cancer treatment and anti-viral drugs. The jobs will be axed across all divisions within the firm, including manufacturing, administration and supply.

This is the second rationalisation programme sought by in the past 12 months by Schering-Plough, which at one point employed almost 1,000 staff for their Irish operation. In January 2004, it announced 170 job cuts as a response to a falling market share for its leading drug products.

It is believed the company is blaming a build-up of stock produced in Cork for the latest lay-offs, after projected sales growth failed to materialise.

Globally the company is also in trouble, having recorded losses of almost €¾bn in 2004. The company also operates two plants in Wicklow but they will not be affected by the announcement.

Minister Martin last night expressed his disappointment at the job losses and said the company stated it was due to restructuring. He has instructed state agencies to work with industry in the Cork area and said he was confident that the outlook for job creation in Cork was still very positive.

A spokesperson for the Department said Schering/Plough has been paid a total of €16.69m in grants to date but no further payments were due.

"The company has historically exceeded its job targets, but in the light of new job losses grant repayment liability will be examined," he said.

Meanwhile, the minister announced four new investments to create a total of 255 high-quality jobs in Dublin.

The companies creating the jobs are Hartford Financial Services Group in Swords, car rental company AutoEurope in Sandyford, hospitality and catering company MarketBoomer in the Digital Hub, and Colgate-Palmolive in Citywest Business Park. The Hartford Group, one of the largest financial services and insurance companies in the US, will employ about 130 people to manage life assurance business in the UK.

Martha Kearns and Ralph Riegel
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