Page 116 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

worldwide with around 1 400 of these in the legacy Schering-Plough (Ireland)
organisation. Sites are currently based in Rathdrum, Co. Wicklow and Brinny, Co
Cork, in addition to the Bray plant.
At Bray the company currently employs around 240 people on site and this
number has been stable for some time. Around 100 employees are directly
involved with the production side and are generally experienced operatives,
some with specialist skills for this sector, but not necessarily with any formal
qualifications reflecting this work. Other staff are employed in support functions
such as quality, finance, engineering, supply chain, etc. and would have
qualifications and experience to match the needs of their particular jobs.
The plant is an important source of employment in the area and while the
production staff tends to have fairly local travel-to-work patterns, many other
employees travel from a much greater catchment area. Trade union membership
is high among the production and engineering staff, together accounting for
approximately 90 employees.

6.5.2. Restructuring and job losses
The latest acquisition of the company by Merck Pharmaceuticals follows the
takeover in 2007 by a Dutch conglomerate (Organon Bio Sciences and Intervet)
and it was the decision of this company that precipitated the current restructuring
exercise. Following a review of the multinational’s production facilities worldwide,
the decision was taken to rationalise the number of plants. The Bray operation
(the only animal health manufacturing site of the three in Ireland) was earmarked
for closure. The need to bring about cost reductions was the principal motivation
behind this decision and the Bray plant was felt to need substantial investment to
upgrade its plant and machinery, more so than other plants in the group. As a
result, production will be phased out and switched to the company’s other
operations in Europe – including Germany, Spain and France – indicating that
this is not about reducing labour costs and was not a direct response to the
current economic recession.
The announcement of the closure was made in March 2009 and the current
timetable for the rundown of the plant sees ultimate closure by the middle of
2011.

6.5.3. Restructuring practice and processes
The company has responded to the announcement of the planned closure with a
series of activities to inform staff and outline the timetable and types of help that
will be available. It has engaged the services of a private sector outplacement

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