Pauwels lost wages worth €4.6m per year

An urgent call is being made to establish a task force to support businesses in the Dublin Road area of Cavan town after the latest blow that CG Power Systems (formerly Pauwels Trafo) is to put its 450-strong workforce on a three-day week from next Monday, July 4. While the pay packets for Pauwels are estimated at €10.4m a year in the local economy, it's believed that the new working arrangements will result in reduced spending power of €4.2m over a year. This development follows other hammer blows over the past year including the closure of Brady's Motor Park and Homemakers with the loss of almost 50 jobs. Also, the Cavan Crystal Hotel and P Elliott & Co have been placed into receivership and Quinn Insurance into administration. The newly appointed president of Cavan Chamber, Jim Burke, told The Anglo-Celt this week that at one stage the Dublin Road area was known as the "golden mile" but it is now becoming more like a "graveyard". He described the situation as "tragic" adding it will have a knock on effect for many businesses in the town. Mr. Burke called for a task force to be established within days to include the County Enterprise Board, IDA, Cavan County Council and the Chamber itself. CG Power Systems Ltd on the Dublin Road told the staff on Tuesday afternoon last of their decision which it claimed was unprecented and it did not "take lightly". It is under stood that the ESB which is its biggest customer has reduced its order by 40% over the past year and that is having a knock-on effect. The company, which has been based in Cavan since 1977, said the three-day week is a "temporary measure" adding that it is actively engaged in tendering for more business. A spokesman for SIPTU said there was considerable anger among its 300 members in the plant as there was a serious imposition in their incomes as a result of this decision. "We are in discussions with the company and the matter will be reviewed on a weekly basis."