Union meets firm over jobs

Fruit of the Loom employed 3,500 people at its peak in Ireland

Trade unionists have met management at a clothing factory in County Londonderry which is to close with the loss of 260 jobs.

Fruit of the Loom announced on Wednesday that it would be scaling down its operations in Derry and Donegal over the next five years.

The company said in a statement it was part of a major restructuring of its European operation.

Union members met management on Thursday.

Most of the work carried out by the 630 staff in Campsie, County Derry and Buncrana in County Donegal is being transferred to its factory in Morocco.

Fruit of the Loom first came to Ireland in 1987, employing 3,500 people at its peak.

It's probably better to hear it like this as we have a timeframe to work to - that's the only thing to be thankful for Kevin McKinney Siptu

A company spokesperson said: "Despite our best efforts, our Irish manufacturing base is no longer cost competitive, regrettably making this action necessary."

Northern Ireland's textiles industry has been hit by thousands of job losses in recent years, due to heavy competition from low wage economies, particularly in eastern Europe and the Far East.

Kevin McKinney of the union Siptu said employees had been expecting the news.

He said: "It has always been in the back of people's minds and you always think 'when will it come'.

"When it actually does come, it's still a shock.

"It's probably better to hear it like this as we have a timeframe to work to - that's the only thing to be thankful for."

Mr McKinney said the company told him there would not be any redundancies for the first two years.

'Significant impact'

Economist Michael Gallagher said the job losses would have a significant impact on the economy in the north west.

"In the last five years, we've seen about £30m withdrawn from the local economy," he said.

"We haven't really seen any large-scale direct inward investment to compensate for that."

SDLP leader Mark Durkan said it was "yet another terrible blow to the north west region".

DUP economy spokesman Robin Newton called for the government to develop a "valid strategy to halt the decline" in Northern Ireland's textiles industry.

In June, Desmonds announced it was into voluntary liquidation with the loss of 260 jobs.

The company, which had been in business for 120 years, blamed cut price competition from overseas manufacturers.

Courtaulds announced in May that 185 jobs would go with the closure of its plant in Limavady.

In February, Herdman's announced its operation at Sion Mills was closing with the loss of 270 jobs.