Firms axe 300 jobs as economic downturn bites.

Some 300 jobs were lost today as two companies cut their workforce.

Some 300 jobs were lost today as two companies cut their workforce.

Insurance giant FBD is axing around 150 staff and closing offices across the country claiming more customers were booking policies through the internet.

Shannon-based international diamonds company Element Six is cutting a similar number citing the need to reduce costs because of the global economic downturn.

Unions, who branded the cuts a blow coming so close to Christmas, are expected to hold talks with management at both firms.

Unite, which represents 330 of the 350 workers at FBD’s local office network, is to meet with staff next week.

Brian Gallagher, regional officer, said: “This is a real blow to staff, especially coming at this time of year.”

Mr Gallagher said union officials will hold four regional meetings with staff in Cork, Cavan, Carlow and Castlebar next week, and meetings with management the following week to try and save the positions.

He said the one positive aspect was that the company was committed to a programme of voluntary redundancies.

FBD claimed more than 70% of car and home insurance customers are using the internet or telephone to book policies. As a result company bosses are to reduce the number of local offices around the country from 47 to 34 during the first half of next year.

The company, which has 953 full-time staff members, confirmed it expected the job cuts would be made through voluntary redundancies. Andrew Langford, FBD chief executive, said the company would enter talks with staff and unions immediately.

“A number of offices will merge and we aim to achieve the resultant reduction in staff numbers through a voluntary severance programme in as short a timeframe as possible," Mr Langford said.

“We will enter a consultative process with staff and representative bodies immediately.”

Element Six, based in Shannon, is to slash 150 jobs by the end of the year as part of a global group-wide cost saving programme.

The company, which employs 620 people, manufactures and distributes industrial diamonds and super-hard materials.

Ken Sullivan, General Manager of the site, blamed the global financial downturn for the need to cut costs.

“Our major customers include those in construction, automotive, general engineering and the drilling for oil and gas,” he said.

“All of these are caught up in the downturn in global business. In some sectors, sales are running as low as 50% of what we would have expected a few weeks ago.”

Element Six is the world’s largest manufacturer of industrial diamonds and has plants in South Africa, Sweden, Isle of Man, UK, China and the Ukraine. The company was previously called De Beers Industrial Diamonds.

SIPTU said it would be looking for a meeting with management to discuss the cuts.

“The union says that it regrets the possible loss of high quality jobs but that it has negotiated good redundancy schemes with the company in the past when there was a downturn in the market and it hopes to do so again if necessary,” a SIPTU spokesman said.

Pat Breen, Clare Fine Gael TD, branded the job losses devastating for workers and their families.

“There is never a good time to hear about job losses but today’s announcement is especially harsh with just three weeks to Christmas,” Mr Breen said.

The Dáil deputy hit out at Taoiseach Brian Cowen and claimed around 1,700 jobs had been lost in the county since he took office.

Clare Mayor Madeleine Taylor Quinn branded the job cuts a hammer blow to the county. Ms Quinn said she believed the difficulties experienced by the company were not helped by the loss of the Shannon/Heathrow air link.

“The achievements to date in providing a highly skilled workforce through the presence of the University of Limerick, which adds value to the multinational sector, have been greatly undermined by the axing of direct access to the main transport hub in Western Europe,” she said.

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