100 jobs are under threat in Ennistymon with Daktronics entering a redundancy consultation process.
With a history in Ennistymon stretching back to 1979, the company is now planning to commence a redundancy consultation process for its staff at Deepark Industrial Estate.
Kevin Neville founded Data Display in 1979 and led it to become one of Europe’s largest producers of electronic displays. In 2014, it employed 150 people with signs made by the firm used by commuters travelling on the New York subway, the Dart in Dublin, the Metro in Paris and the London Underground.
In 2014, the Neville family sold the firm to US rival, Daktronics for an undisclosed sum. At the time of the sale, Data Display was led by Kevin’s son Paul and daughter Ann-Marie. The trio were listed as shareholders in Data Display along with Sarah and Theresa Neville when shareholders funds stood at €6.6m.
Under the agreement at the time of the sale over a decade ago, Daktronics had to retain Data Display’s workforce of experienced sales, service, engineering and manufacturing teams.
On Wednesday, management in Daktronics confirmed they were set to introduce changes which would impact on its Ennistymon employees.
Correspondence issued by management which has been obtained by The Clare Echo outlined that the digital display and control system technology industry is “an intensely competitive market sector. We’ve pursued a number of strategies to strengthen this business, but sustained market volatility and increasing competition does not support future growth in the business as currently structured. Regrettably we are now considering exiting highly customized International Transportation display business.
“In connection with that process, the company has notified our approximately 100 employees in Ireland that their roles are ‘at risk’ and we are entering into a collective redundancy consultation process regarding the future of our Ennistymon manufacturing facility and other Ireland-based roles. As a significant share of Ennistymon’s manufacturing output are products for this market, the consideration to exit the highly customized international transportation business materially weakens the long-term viability of the facility. The facility has not been operating at full manufacturing capacity for a number of years despite significant investment and efforts to redirect products from other markets to the plant”.
According to management, “This is a difficult decision, and one we do not take lightly. It reflects the realities of a challenging market, not the commitment and dedication of our employees in Ireland or the quality of their work. No final decisions have been made and during this process the factory will remain operational. Our focus now is on supporting our employees are we work through this process, which we are entering into in good faith”.
Clare TD, Joe Cooney (FG) told The Clare Echo that he was “very concerned” that 100 employees in Ennistymon were placed at risk of redundancy. “This is understandably a very worrying time for the workers and their families, and my immediate priority is to do everything possible to support them”.
Deputy Cooney confirmed he had contacted Minister for Enterprise, Tourism and Employment, Peter Burke TD (FG) on Wednesday evening regarding the situation “and will be seeking to ensure that the Government provides whatever support it can to the workers and the company during the consultation process”.
He stated, “The company has informed me that no final decision has been made at this stage, and I will continue to engage with Daktronics and the relevant State agencies to explore every possible option to protect the jobs and the future of the Ennistymon facility. If Daktronics ultimately decides to withdraw from the facility, it will also be important to examine every opportunity to secure an alternative operator or future use for the site, as well as employment opportunities and appropriate supports for any workers who may be made redundant. This is the core focus of my discussion with and ask of Minister Burke. The facility is an important economic asset for Ennistymon and West Clare, and every effort should be made to protect the employment and economic activity associated with it”.
