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Cardinal Health to Close Tullamore Plant, Leaving Over 300 Workers Facing Redundancy

29 August, 2024 - 12:58PM
Cardinal Health to Close Tullamore Plant, Leaving Over 300 Workers Facing Redundancy
Credit: wsj.net

More than 300 people working at Cardinal Health in Co Offaly are being made redundant following the company's announcement to close its plant by spring 2026. Staff and union members were informed of the decision on Thursday morning.

The company closed operations at the Tullamore site on Wednesday when it called staff to the emergency meeting.

Cardinal Health has 315 employees at the medical devices manufacturing plant at Sragh Industrial Estate in Tullamore.

Minister for State for Enterprise and Employment Peter Burke said his main concern was for Cardinal Health staff and their families who were now coming to terms with the impact of the announcement.

“This industry has had a presence in Tullamore for over 40 years, well served by a loyal workforce and with considerable support from the IDA over the years,” he said. Cardinal Health has 315 employees in Tullamore.

“I have been engaging and will continue to engage with the company. Following this morning’s Town Hall meeting with staff, and along with the IDA and my Department we will work with the company management and with staff on current and potential future possibilities. We will make every effort to identify alternative employment opportunities for the staff affected by this announcement.

“As a country we are at full employment, with strong demand for medtech and life sciences skills and we will work to help employees impacted to find alternative employment.”

Siptu trade union area organiser Ashling Dunne said that notification of a staff meeting came “out of the blue” and was a shock.

Speaking on RTÉ's Morning Ireland on Thursday ahead of the announcement, Ms Dunne said it was “never generally good news” when a meeting like this was called.

On Wednesday afternoon, staff were advised that production would cease to allow all staff to attend a meeting on Thursday morning for an announcement.

Ms Dunne, who has been representing staff at Cardinal Health for over five years, said there had been no indication that the company was in any difficulty or that there would be any job losses.

There would be a number of options for staff, she said. “We absolutely will have to make contact with the IDA and the Government to intervene immediately.”

The Closure

The closure of the Cardinal Health plant in Tullamore marks a significant loss for the local economy, as the company has been a major employer in the area for over 40 years. The company, which is headquartered in Ohio, is a distributor of pharmaceuticals and a global manufacturer and distributor of medical and laboratory products.

The decision to close the Tullamore plant is part of Cardinal Health's “regular assessment of our global business, manufacturing and supply chain operations to ensure we are able to meet the evolving needs of our customers, the industry and our business.”

The Impact on Workers

The closure of the Tullamore plant will have a significant impact on the lives of the 315 full-time employees who will be made redundant. The company has confirmed that a full redundancy package, including six weeks pay per year of service, plus the statutory two weeks, will be offered to affected workers.

However, the news of the closure has been met with shock and disappointment by workers and their families. Many workers have been employed by Cardinal Health for many years, some even since finishing school. The loss of their jobs will be a significant blow to their families and the local community.

The Future of the Site

The closure of the Tullamore plant has raised concerns about the future of the site. The plant is located in the Sragh Industrial Estate, which is also home to other medical device companies. The plant is across the road from sterilisation company Steris, which has suggested that the site would be ideal for a medical device company to locate due to the already present sterilisation equipment.

Local officials have said that they will be working with the IDA to attract a replacement company to the site as soon as possible after the plant closes in 2026. However, the loss of Cardinal Health is a significant blow to the local economy, and it will take time for the area to recover.

The Government's Response

The Irish government has said that it will be working with Cardinal Health and the IDA to help affected workers find alternative employment. The government has also said that it will be providing support to workers through upskilling and training programmes.

The government's response to the closure has been met with mixed reactions. Some have praised the government's commitment to supporting workers, while others have criticized the government's failure to prevent the closure of the plant.

A Devastating Blow

The closure of the Cardinal Health plant in Tullamore is a devastating blow to the local economy and the workers who will be affected. The closure highlights the challenges facing Irish manufacturing in the face of global competition. The government needs to work with businesses and workers to ensure that Ireland remains a competitive destination for investment and that Irish workers have the skills they need to thrive in the global economy.

The closure is a stark reminder of the vulnerability of Ireland's economy to the whims of global corporations. The government needs to take steps to ensure that Ireland's economy is more resilient and that Irish workers are not left behind in the global economy.

Tags:
Cardinal Health Tullamore Cardinal Health Cardinal Health Tullamore Job Losses Redundancy medical devices
Maria Garcia
Maria Garcia

Editor

Passionate editor with a focus on business news.

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