Vita Cortex warns Cork sit-in by former staff could mean further job losses
Published 06/01/2012 | 14:37
FOAM maker Vita Cortex is warning that an ongoing sit-in by former staff at one of its plants in Cork could mean further job losses.
Vita Cortex closed its Kinsale Road operations in Cork just before Christmas and 32 workers staged the sit-in after they were told they would not be receiving any redundancy payments.
In a statement the company said the move by the workers is undermining Vita Cortex’s attempts to "maintain the existing levels of business and the employment needed to service it, which is heading to further potential job losses in the very near future" where 60 additional people are employed in Athlone, Cork and Belfast.
It added that the situation is causing “ongoing negative publicity.
"We are fearful that the company and its remaining workforce may now become the victims of misperception and misinformation resulting in a basic failure to accept the reality of the company's financial situation."
While the workers claim funds should be taken from an account in a sister company to pay their redundancy entitlements, Vita Cortex pledged that account to Allied Irish Banks as security for a loan of over €8m which is now in the National Asset Management Agency.