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Bitech blow as survival plan collapses which will leave 150-200 mid-Louth workers redundant
THERE is little hope among the workforce this week that any of the jobs at the Bitech Engineering in Dunleer will be saved.
The survival plan to move 150 of the 200 workers to its sister plant Chilton Electric on the Ardee Road is in tatters after the company announced last Thursday that it has shelved its €2.5 million investment plan for Bitech.
"There are no jobs in Chilton," one worker said. "The company was just going through the motions when they entered into negotiations. Once that investment package was off the table, that was it."
In December the workforce rejected the conditions laid down by the company. The main stumbling block was that 150 workers who would be transferred to Chilton Electric would have to take a 20 per cent cut in wages. This would mean a drop of €80 euro a week.
SIPTU representative John King said the union has brought the case to the Labour Relations Committee and will be pressing for it to be dealt with as soon as possible.
"We were involved in survival talks since Christmas," Mr King said. "We realised by November that manufacturing at Bitech would cease and what was available was redundancies and the transfer of the remaining jobs to Chilton.
"We made some progress on this, but not enough. But it is still possible to save jobs and we will continue to engage with the comapny.
"The implementation of the investment plan and the move to Chilton was always going to take time. It all remains to be seen."
But last week the company announced that the plant would be scaled down and eventually close altogether next November.
And an air of gloom has been cast over the company for a long time.
"The threat has been hanging over us for three years," one worker said. "But even though it was expected, it's still a blow when it actually comes.
"You're never really ready for it. I thought I was prepared, but I'm not."
Three years ago, Bitech Engineering suffered an €11.7 million loss. Two years ago it was 3.3 million and the projected loss for this year was €3 million.
In June 60 jobs were lost at the Bitech plant which manufactures electrical heating and cooking appliances. The main products are electric fires, cookers and towel rails.
Eighty-five per cent of products produced at the plant are exported to the UK. There has been a major drop in demand because of the recession and this has put the company into difficulties.
One of the problems at the company has been the lack of demand for its products caused by low cost competition from China and eastern Europe.
Mid-Louth county councillor Pierce McGeough said the closure of Bithech is a massive blow to Dunleer, Castlebellingahm, Annagassan, Dromiskin and all of the mid-Louth area.
"It's a savage blow to mid-Louth," he said, "and the Government must step in and tackle this haemorrhaging."
Bitech Engineering was set up in 1978. The original Bitech plant goes back to the 1940s. It was originally AET which was bought out by Castlebellingahm man Martin McCourt.
He developed it in the 1960s, merged it with the British company GEC, and made it the biggest employer in the county.
At its peak in 1969, GEC employed 1,500 people.
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Thursday 17 May 2012
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