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Guinness layoffs another blow to Dundalk economy

February 16, 2011

By Staff Reporter

By Andrew Bushe

DUBLIN — Trade unions said they planned to fight a decision by Guinness to axe 190 jobs at its McArdle packaging plant in Dundalk and another 90 at the local Harp brewery in what is expected to be only the first step towards further countrywide cuts.

Workers in Dundalk, where there has been a brewing tradition since 1683, were stunned by the brewing giant’s decision.

The cutbacks will mean that Guinness, which has been synonymous with Ireland for centuries, will no longer be packed in the Republic.

A packaging plant in Belfast has been spared because of cheaper labor costs and a plant at Runcorn, near Liverpool, will also remain open because of its strategic location.

Further layoffs are expected at Guinness operations in Dublin, Kilkenny and Waterford.

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Competition in the beer business is intense. The company recently announced sales of stout were down 4 percent last year.

Spokesman Pat Barry said the decisions followed a major four-month review of operations, running costs and capacity.

"We did that because of excess capacity. In the business worldwide there has been enormous consolidation," Barry said. "We had to do it to remain competitive.

"We are reviewing all of our other sites as well. We do have a need to improve the level of efficiency in all of them. We will be developing plans for those breweries in due course.

"The market is changing quite significantly. There is very substantially increased competition right across the board."

Changing drinking habits are eating into other beer and lager product sales. Increased consumption of cider, wine and so called ready-to-drink spirits has hit the company.

The Dundalk packaging jobs will go in September and the brewery jobs by next June. The Guinness cuts are a second major jobs blow for the border town, with Panasonic recently closing its plant with the loss of 400 jobs.

Tanaiste Mary Harney has set up an interagency group to help workers find other jobs.

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