The Labour Court recommended redundancy terms of three weeks’ pay per year of service, plus statutory entitlements, for workers affected by Keytronic Europe’s plan to move manufacturing from Dundalk to Mexico. Its recommendation was signed on 18 June 1996.
The proposed move would cut the Dundalk workforce from 391 to 75, with 280 full-time and 36 part-time workers facing redundancy. Keytronic Europe had offered 1.25 weeks’ pay per year of service, while the Amalgamated Transport and General Workers’ Union/Works Council sought six weeks’ pay per year, in both cases plus statutory entitlements.
The Court cited competitive pressures, ongoing losses, the company’s financial position and its commitment to keep operating in Dundalk. Alongside the three-week package, it recommended that the company review how many employees it would retain. The package depended on employees agreeing to facilitate the transition and restore output levels.