Bord na Móna has confirmed the temporary layoff of up to 230 employees from the semi-state company’s Energy Business Unit.
The decision follows a board meeting this morning, Tuesday, April 21, and the conclusion of discussions with the Group of Unions (GOU) which have been ongoing since April 9.
In a statement this evening the company said the move is impacting people “at all levels” of the Energy Business Unit including management, permanent and seasonal employees from its peat division.
“The company has taken the decision to temporarily release up to 230 employees in the Energy Business Unit.
All impacted permanent employees will continue to receive 100% of basic pay and the company will avail of the Wage Subsidy Scheme.
The statement does not specifically include details of any payment or supports for seasonal employees.
“The company will continue to engage with employees and review the ongoing challenges caused by the Covid-19 crisis,” it reads.
Over recent weeks Bord na Móna says it has taken “a range of steps” to manage the significant impacts of the current Covid-19 health crisis on its business.
- Steep declines in demand for energy generally and in electricity prices – (which has had a twofold effect of significantly reducing revenue from its own Edenderry Power Station; while also causing a complete cessation in sales of peat to the ESB’s West Offaly and Lough Ree power stations);
- An unprecedented fall in commercial revenues in Bord na Móna AES, and,
- A collapse in horticultural revenues as retail outlets have closed and some professional customers have closed production facilities;
- And the cancellation of significant asset sales in its Energy Business Unit.
This latest development – which has been rounded rebuked by a number of rural-based TDs – also comes amidst a backdrop where Bord na Móna continues to await a decision from An Bord Pleanála which will determine whether Bord na Móna can harvest peat on its bogs this summer. This decision is due to be made on May 12.
Memo to staff
In a memo to staff this afternoon Bord na Móna CEO Tom Donnellan also outlined a number of further safeguards being taken by the company.
“We have taken a number of cost-saving measures, including a deferral of all collectively bargained and personal terms pay increases, the elimination of all discretionary overtime and have requested that all employees take five days annual leave.
“These have been taken to help protect you and the wider company from the impacts of the crisis on our business.
“In addition, the company is also scaling back discretionary spend, slowing or scaling back projects and managing peat stocks. With the support of the Government’s Wage Subsidy Scheme, the company has already temporarily released employees involved in commercial operations in AES [waste collection].
“We are taking these actions to safeguard as many of you as possible and to ensure that the company is able to manage through this difficult period.
“As we implement these new protective measures, I want to acknowledge the efforts of people across the company that has enabled most employees to continue to do their work,” Donnellan said.