Tuam Fights Shock Plans

The Connacht Tribune, Friday, January 10, 1986

By John McIntyre.

The town of Tuam is bracing itself for its "biggest fight ever" to save their troubled Sugar Factory following last Thursday's announcement that the plant is to be partially closed down for two months from January 17, with 121 of the entire workforce of 178 being laid off for the same period.

And unless the proposal is dropped by the Irish Sugar Company a picket will be placed on St. Stephen's Green House — the Headquarters of the Sugar Company — by the townspeople of Tuam until the plan to close the plant for two months is abandoned.

That was the outcome of an emergency meeting of Tuam Town Commissioners on Tuesday night. It was attended also by members of the town's Chamber of Commerce and Community Council and the proposed shutdown of the factory was condemned in the strongest language.

Commissioners agreed that if the Sugar Company's decision was allowed to be implemented it would mark the beginning of the end for the Tuam Sugar Factory which had suffered job losses of over 120 in recent years.

Meanwhile Junior Agriculture Minister, Mr. Paul Connaughton T.D. reiterated the Government's commitment to keeping the Tuam plant open and said it was as solid today as two years ago when first announced.

The threat of possible permanent closure has been hanging over the factory since 1981 when a decision was made by the Coalition Government to shut down the loss making plant, but following the agreement to a rationalisation plan the factory was saved.

West of Ireland farmers rallied around the factory too. The amount of beet processes at the Tuam plant rose substantially and productivity there was significantly increased.

Thursday's proposed cuts for two months were matched by cutbacks at the Sugar factory's sister plant, the Tuam Engineering Works. The Sugar Company asked for a "small number" of redundancies, a voluntary 10% reduction in employee's wages and that workers also forego a 6% pay rise awarded under the 25th National Wage Round.

Tuam is not the only sugar factory affected by what a spokesman for the Irish Sugar Company described this week as efforts to make 'important savings' in the overall industry, for 115 of the 22 employees at the Thurles Sugar Factory are to be laid off for one month.

However, the Tuam Town Commissioners on Tuesday night felt the Tuam plant was being singled out as the 'whipping boy' and that Mr. Chris Comerford, the Sugar Company's Chief Executive Officer, was determined that Tuam would be closed down.

The Chairman of the Tuam Town Commissioners, Councillor Joe Burke, claimed that Mr. Comerford made the announcement without consulting his Board of Directors and he requested that Agriculture Minster Mr. Austin Deasy demand the C.E.O's immediate return from the United States.

Mr. Comerford has dodged off to America and is clearly intent on closing Tuam through the back door if he can't do so through the front door. The Tuam workers have accepted recent redundancies at the plant and the Workers Action Committee have worked closely with the Sugar Company on the reduction of numbers there.

Indeed, all the required essentials to make the Tuam plant viable were taken but this is the gratitude we get. There are good workers in the Sugar Factory and we must stand behind them" said Councillor Burke.

Yesterday, a spokesman for the Irish Sugar Company issued the following statement:

The temporary closure of the sugar plant in Tuam will lead to important savings in the overall industry without damaging the outflow of production at the plant in Tuam or the actual maintenance of the factory.

None of the Agricultural staff have been involved because of the importance of keeping up beet acreages in Tuam, but Irish Sugar is competing with more modern and streamlined plants in Europe and must remain competitive. This temporary scaledown in Tuam is not linked with the long—term problems there — these remain. This additional saving can be made without interfering with the long—term prospects of employment, or workers' pensions and other rights. These measures are being taken in a valley period at Tuam.

This is an operational decision aimed at reducing the cost of running the industry nationally and making us more competitive against the inflow of sugar manufactures abroad. The company has a brief to operate as economically as possible.

But Councillor Burke maintained on Tuesday night that the two—month closure of the Tuam plant would only save the company around £200,000. "I believe £500,000 could be saved by the Sugar Company in insurance perks were taken away from drivers by only paying them the net cost of insurance instead of the gross cut of the insurance as a perk."

Mr. Commerford has said that all factories are being treated equally but this is not true. We must show the strength of feeling in this town. People outside of the area think the Tuam factory is a bottomless pit where good money is poured in after bad. This is wrong but still it is believed because our case had not been aired nationally

Mr. Midy O'Grady (Fine Gael) said that Mr. Comerford believed that the Tuam factory would never be viable.

Recently, when he met a deputation from the Town Commissioners, he told us to seek an alternative industry for Tuam.

He said if Mr. Comerford was thinking of taking on Tuam on his own, "we will take him on". I am confident that the Government will stand by its commitment to keep the factory open", he said.

Mr. Gay Browne (Independent) said that the Sugar Company's announcement was a serious body blow to the town and that Mr. Comerford should be brought home to 'face the music'.

The Sugar Company officials could do the country a great service by making themselves redundant.

This problem needs the entire support of the town. For too long the same few have been standing up and speaking up for the factory. The town can't take any more blows", he added.

Mr. Johnny Flaherty (Independent) pointed out that the farmers of Galway had shown themselves capable of producing beet, while Mr. Frank Biggins (Labour) described the 'mental torture' workers at Tuam had been forced to endure in recent years.

Mr. Jimmy O'Mara (Fianna Fail) who is also Chairman, of the Workers, Action Committee at the factory, said that the workers at the Engineering plant had been offered an unpalatable package.

If the Sugar Factory gets away with the two months lay off it will mark the beginning of the end for the Tuam factory. No work force can take cuts like that.

It was an admittedly bad year for the engineering works — estimates put its losses at £250,000 in 1985 — but one third of the loss was due to a management decision to cancel a capital order for the Sugar Factory after the materials had been purchased

Throughout the Tuam Town Commissioners meeting there was repeated condemnation of Mr. O'Mara being asked to pick up his employment papers on Friday (tomorrow) by the Sugar Company.

Said Councillor Burke:

Should these stupid threats on you materialise it will not be taken lying down. You have never let the Board down and have always been straight. We will stand fully behind you.

Mrs. Betty Lydon of the Tuam Chamber of Commerce said there was no alternative to the Tuam Sugar Factory. The motives behind closing it down were sinister. But Tuam was determined to hold onto the factory.

Mr. Miko Bodkin, representing the town's Community Council said: "It is time to find out if the Government or Mr. Comerford is right", he said.

Mr. Brian McNamara, representing the Tuam Chamber of Commerce, accused the Sugar Company of deliberately running down the Tuam plant over the last five or six years. "The factory badly needs a capital injection", he said.

A late arrival at the Tuam Town Commissioners meeting was Senator Mark Killilea who said that he was 'very upset' at the Sugar Company's announcement. He appealed to the Taoiseach to intervene and to remove; the threat of execution on the Tuam plant.

"It's the lowest form of negotiations and I am more annoyed over this than any other single issue regarding Tuam down through the years. In my opinion the head office of the Sugar Company is the problem which needs to be tackled", he added.

Mr. Pat Hardiman, Tuam Chamber of Commerce, pointed out that the Government had given: a commitment to keep Tuam open but was now standing 'idly by' and watching Mr. Comerford closing down for two months.

It was agreed by all present to seek meetings with Junior Agriculture Minister, Mr. Paul Connaughton, the Irish Sugar Company and the workers at Tuam Sugar Factory in an attempt to prevent the plant from closing down for two months.

Meanwhile, Deputy Michael Kitt, Chairman of Galway County Council, will be seeking the support of all County Councillors at a County Council meeting on tomorrow (Friday) for a resolution calling on the Sugar Company to reverse its decision on the lay—offs at the Tuam factory and the 16% reduction in wages at the engineering plant.

"If these proposals go—ahead it will be a severe blow to the economy of the area and would have a disastrous affect on the workers at the factory, the farmers and the local community", he said.

Fianna Fail TD Mr. Noel Treacy yesterday described the Sugar Company's cold, callous and discriminatory decision as being totally unfair on the workforce at the Tuam Sugar Factory.

"The management and Board of the Sugar Company have shown no regard for the positive attitude of the workers and their efforts for the factory over recent years", he said.

In a statement Senator Tom Hussey said the temporary closure of the Tuam Sugar Factory and the laying off of approximately 200 employees is a serious blow to the economic life of Tuam. Once again, in spite of assurances given by the Minister of State that the factory would not be closed, the Government have allowed the Sugar Company to dictate to them and be prepared to add to an already long dole queue in the Tuam area in order to balance their books.

No consideration is given to the social problems created by this closure or to the uncertainty to farmers regarding their 1986 contracts. If the Government and the Sugar Company had any interest in maintaining the factory in Tuam surely this is the time of year they should be out promoting the growing of beet rather than demoralising both farmers and workers by this closure.

Commented Junior Minister Connaughton:

"The Government commitment to keep Tuam factory as a fully operational processing plant is as solid today as two years ago.

There is no talking or whispering campaign going on to close it. There is full commitment to — Tuam — the Government brief is that Irish Sugar is to keep Tuam open. There is no deviation from that.

I have spoken to the Chief Executive of Irish Sugar about the engineering plant and have pressed him to put more of the Irish Sugar engineering work towards Tuam and he has agreed to look, favourably on this.

Said a spokesman for workers at both plants.

We have rejected both the idea of closure for two months, and the package of three redundancies, no wage increase and a ten per cent cut in wages — this whole thing was sprung on the workers without consultation and it won't be accepted.

The worker directors were not told — at the last meeting they asked about short—time rumours and they were denied. The big danger workers see is that if the factory closed for two months and it made farmers grow less beet, then it would be very easy to leave the factory closed.

We have been years making concessions, every one that was demanded, in an effort to help the industry and make it a viable concern. The workers have cooperated in conceding over 120 redundancies, early retirements and non—replacements. They are very concerned that this may be the 'thin edge of the wedge' and especially as there were no consultations with workers who have been very co—operative.