Martin Ferris (Kerry North, Sinn Fein)
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Question 147: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the threat to jobs at a plant (details supplied) in County Limerick; and if her Department is involved in efforts to save the 800 jobs at the plant. [42140/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am informed by IDA Ireland that Kostal Ireland GmbH plan a reduction in job numbers in Mallow and a change to working arrangements at their Mallow and Abbeyfeale plants. These steps are deemed necessary by the company to offset a drop in sales demand. Kostal will be terminating the employment of 29 temporary employees in Mallow, closing both the Limerick and Mallow plants for three working days in November and closing both plants for three full weeks at Christmas. I understand that the company will also move to short time working during 2009.

In general the automotive industry has seen a dramatic fall off in demand in recent months and in early October many of the leading automotive companies, adjusting to the fall in demand, announced temporary plant shut-downs, short-term working and lay-offs. In October, overall U.S. auto sales fell by 32 percent to their lowest level since February 1983 and the European market is also suffering with industry wide sales falling some 20% on the corresponding period last year. This has necessitated immediate corrective action by automotive supply companies to ensure that production matches the automakers' production schedules. Automotive supply companies in Ireland are not insulated from these effects and steps are being taken to prepare for reduced volumes and intensified economic and competitive pressure in the coming months.

I understand that an internal company consultation process has just commenced at Kostal. Following completion of this process FÁS employment Services Management will meet with Kostal management and staff representatives to formulate a plan of action to deliver FÁS services and supports to all 29 staff being made redundant as well as to all staff being out on short time in 2009. Such services and supports will include: on-site presentations on FÁS services and supports; one to one registration and guidance interviews, setting-up a resource centre to facilitate staff in the career guidance needs and job search activities, and provision of a range of pre-redundancy and post-redundancy training courses to assist all staff in achieving relevant skills updating.