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50 redundancies sought at CG Power Systems

 

CG Power Systems has announced the company is to seek 50 redundancies across the organisation.

This programof redundancies, the company announced this afternoon, is designed to reduce costs and thereby make the organisation “sustainable”.

As a result, the company will reduce employee numbers from 434 to 384.

CG Power Systems has operated in Co Cavan for the last 41 years. However, a reduction in renewable installation business in Ireland and the UK has resulted in significant losses over the past two years which management says now makes it vital for the business to restructure.

“CG Power Systems Ireland have put significant effort into considering alternatives and expanding our market offering but this alone cannot maintain viability. Consequently, the difficult decision has been taken to realign CG Power Systems Ireland Limited with market competitiveness in order to gain new customers and market share.”

The reduction in employee numbers is expected to be initiated via a Restricted Voluntary Severance Program. All employees may apply for consideration of the package. A consultation phase with unions and staff for a period of no less than 30 days is expected to commence as early possible.

“CG Power Systems fully intends to continue to play an important role in Cavan and the surrounding region both in terms of employment and through its local sourcing activities. This program will ensure the competiveness of the Cavan operation well into the future,” a spokesperson added.

 

Minister Humphreys expresses 'disappointment'

Today’s announcement by CG Power Systems Ireland is deeply regrettable. As a local elected representative, it is very disappointing for me to see job losses here in Cavan and I know this announcement will come as a blow to the town and region.

The Government and IDA Ireland have engaged intensively with CG Power and I met with senior management myself earlier this month. Unfortunately, the company has informed us that due to increasing cost pressures, they have no option but to take this difficult decision today. I am assured however that this measure is part of a wider effort to put the plant back on a sustainable footing and ensure its competitiveness into the future.

Of course, my immediate concern is for those workers directly affected by this announcement. Many of the workers at this plant will have been with the company for many years, and this makes the news even more difficult. However, I welcome the fact that the company is seeking the redundancies on a voluntary basis.

I informed my colleague, Minister for Employment Affairs and Social Protection, Regina Doherty, about today’s announcement. She has assured me that her Department’s staff are ready to offer every available support to those who are looking to reskill, upskill and seek new employment.
“The IDA will also continue to work with the company to ensure that all staff being made redundant will get every support available.

CG Power is a hugely important employer locally. Currently the company employs 434 people. While today’s announcement is very disappointing, the company have made it clear that they fully intend to continue to play an important role in Cavan and the region in the years to come, and my Department, together with IDA Ireland, will do everything it can to ensure the future success of this operation.

My own objective, as Minister for Business, Enterprise and Innovation and as a local representative, is to ensure we have the right conditions in place to encourage new job opportunities in the local area.

The numbers on the live register in Cavan are down by almost 50% since 2012 but I am very conscious that more needs to be done.

In February, I met with the CEOs of the Local Authorities in Cavan and Monaghan together with senior officials from my Department, IDA and Enterprise Ireland to discuss how we can drive job creation in both counties. I also launched the Action Plan for Jobs 2018 in the region.

As Minister, I will be working to ensure there is a continuous focus on job creation in the border region and in particular on counties like Cavan and Monaghan.”