Coty job losses in Nenagh reveal the danger of reckless mergers – Mattie McGrath

Independent TD Mattie McGrath has described news that over 200 jobs are to be lost at the Coty cosmetics plant in Nenagh as a body blow for the town and county of Tipperary. Deputy McGrath was speaking as staff at the site expressed their disgust at the manner in which the news initially emerged:

“This is a deeply distressing announcement that will be received with huge disappointment and shock in the Nenagh community.

We were all aware that since the merger with Proctor & Gamble in 2016 that reorganisation and employment ‘efficiencies’ were on the cards.

What is distressing to the employees however is that despite Coty still operating with an estimated revenue of $9 billion, it still felt it had to make this move.

Indeed Coty have informed us that the merger with Proctor & Gamble only enhanced Coty’s already strong margins, cash flow generation and earnings power.

The questions must then be asked about why, when the company is not under any kind of immediate or even long term financial threat, is it moving the jobs from Nenagh to the UK?

I think there are serious issues here relating to the role of these ‘mergers’ that are increasingly just vehicles through which employees can be discarded.

There are also issues with respect to the Competition Authority. What role if any is it playing in protecting and regulating these practices?  

Another aspect of this episode has also left the loyal and hardworking staff fairly disgusted; and that is the manner in which they heard about the news.

Many of them woke up to hear the rumours circulating on social media or on local or national radio. The staff deserved so much more than this. They should have been informed at every stage of the process that was underway.

In any event, my office will be attending a briefing on the matter with the Minister for Jobs, Mary Mitchell O’Connor later today,” concluded Deputy McGrath.

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