Limerick workers at major employer to take strike action over redundancy dispute

Kostal announced plans in January to make 140 workers redundant at the end of March 2027placeholder image
Kostal announced plans in January to make 140 workers redundant at the end of March 2027

Industrial action is to commence at Kostal in Abbeyfeale on Monday

SIPTU members at the Kostal Ireland plant in Abbeyfeale will begin a campaign of industrial action, including work stoppages, on Monday.

The dispute certains around redundancy terms and SIPTU says “management’s refusal to engage meaningfully with their Union”.

Kostal announced plans in January to make 140 workers at the car parts manufacturer redundant at the end of March 2027. It followed a decision to move production of onboard chargers to China.

Limerick Live understands that 95 operator jobs and 45 non-operator positions are set to be lost to the town on the border with Kerry. There are approximately 360 people still employed at Kostal Abbeyfeale.

SIPTU divisional organiser, Neil McGowan, said on Friday: “We are serving notice that workers will commence industrial action with a work stoppage and the placing of pickets on Monday, November 16 at 2.30pm for four hours. Further escalation of the campaign will be considered, as necessary.

“Since the conclusion of the statutory 30-day collective redundancy consultation process, Kostal management has refused to engage meaningfully with SIPTU and declined an invitation to attend the Workplace Relations Commission (WRC) to discuss up to 140 members’ redundancy terms.”

Mr McGowan said the company’s voluntary severance terms were rejected by 96% of members in a ballot.

“Members subsequently voted by 90% in favour of industrial action and 85% in favour of strike action.

“The more than 400 SIPTU members employed at the Kostal plant in Abbeyfeale are determined to see a fair outcome negotiated that will offer decent terms to workers exiting the company and ensure the viability of the plant for those remaining in employment."

He added: “We hope this issue can be resolved by the company showing respect to its workers and sitting down with their union to agree a comprehensive redundancy proposal.”

SIPTU organiser, Eva Mitchell, said: “Management is refusing to engage with SIPTU to agree a comprehensive redundancy agreement with the Union and the arrangements for those remaining in employment. This is not acceptable to the workers.

“This plant is a major employer in the area and its workforce a key component of the local economy. The adverse impact of the loss of this large number of jobs will only be compounded if the workers receive inferior to previously agreed redundancy terms."

She concluded: “SIPTU remains willing and ready to enter negotiations with the employer directly or with the assistance of the WRC.”

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