Over 50 jobs lost in Mayo after sudden factory closure described as ‘wake-up call’ for SMEs
Cosmetic Creations had been in business for more than 40 years, starting out in 1981 with just five employees and expanding to a workforce of over 70 on-site staff members.
Located in the IDA Business Park in Claremorris, the company closed its doors last month, with reports indicating that 53 people have lost their jobs.
Claremorris-based councillor Richard Finn described the development as a “wake-up call” in relation to what lies ahead for SMEs in Ireland.
He predicted there would be a “downturn in relation to employment in factories”.
Cllr Finn said that if 50 jobs were lost elsewhere in the country, in areas including “Dublin, Galway, Cork, Limerick or Sligo” there would be uproar.
“But when it comes to the smaller areas, they seem to be forgotten,” he said.
“50 jobs lost in Claremorris is not just a statistic. There are 50 people, 50 families, 50 mortgages, 50 people in the community,” he added.
Cllr Finn called on County Mayo’s two ministers, Minister Dara Calleary and Minister of State Alan Dillon, to approach the IDA to help find alternative employment for those affected.
He added that workers must also be provided with “immediate support” in the interim between employment.
Addressing pressures in the private sector, he said he was concerned about the "spiralling cost of doing business”.
“The private sector and employers are taxed to a billion, and the public sector seems to grow like a weed,
“I hope our elected representatives in Dáil Éireann will come on board and find replacement factory jobs for these people,” he said.
His east Mayo colleague, Cllr Patsy O'Brien, agreed and said that if there were “50 jobs announced tomorrow, there would be a fan fair, but when 50 jobs go, you don’t hear anything on it” and described this as the “sad reality” of the situation.
Cllr O’Brein seconded the call on the two Mayo Ministers and asked them to set up discussions to help secure replacement jobs and put supports in place for those now out of work.
He said it is a “difficult time for business” at the moment, pointing to increases in the minimum wage, higher employer PRSI contributions, the introduction of the auto-enrolment pension scheme, high insurance premiums and rising electricity costs.
“These developments are creating a challenging environment for employers, particularly for small and medium-sized enterprises operating on narrow margins,” he said.
Cosmetic Creations has been contacted by the Irish Independent for comment.
This article has been funded by the Local Democracy Reporting Scheme.