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Southside business suffers more blows

Thursday, 11 March 2010

THE largest enterprise initiative in Dublin is set to tackle some of the issues behind recent devastating losses in the city’s retail sector. Following a week when the city saw the loss of the popular Hughes and Hughes book chain, the announcement that Postbank operations are to cease by the end of the year and the closure of Dunnes Stores in Dun Laoghaire, Enterprise Week is offering a ray of hope for hard-pressed business people. Over 2,000 people are expected to attend the 14 scheduled events that are being held during Dún Laoghaire Rathdown Enterprise Week which runs from Monday, March 22 to Friday 26 in various locations across the Southside. The event will be led by leaders in the fields of business who will be offering advice on how to handle the ongoing economic crisis. In one week alone, the town suffered several blows to its retail sector. An Post has been urged to safeguard the jobs of workers who are employed in various Postbank branches throughout Dun Laoghaire Rathdown. Postbank, which announced recently that it would wind up its operations by the end of the year, employs 260 people nationally. It hopes a “significant proportion” of these jobs can be saved, as it believes some of its financial products could be developed further. The main question mark hangs over the 128 people working in its banking business headquarters, mainly based in Dun Laoghaire. A further 20 staff are employed at various Postbank branches throughout Dun Laoghaire Rathdown. Deputy Eamon Gilmore (Lab) and the Communications Workers’ Union (CWU) have called on An Post to ensure that the 260 people currently working in Postbank do not become unemployed as a result of the wind down of operations. Deputy Gilmore said: "The announcement that Postbank will be wound up by the end of this year is extremely disappointing for all concerned but it represents a particularly cruel blow for employees and their families. "Postbank operates out of 12 outlets in the constituency of Dun Laoghaire and employs 130 people in its head office in the town, meaning its impending closure has particularly grave implications for employment in the area. "While I welcome indications from Postbank and An Post that there plans in development to secure a significant proportion of the 260 jobs, there can be no room for complacency. I would urge all parties to leave no stone unturned when working to ensure that the jobs are protected.” The CWU met with Postbank management at the bank’s headquarters in Dun Laoghaire last Thursday to discuss the future for workers at the company. Speaking after the meeting Steve Fitzpatrick, general secretary of the CWU, said: "The Government’s supports for the Irish banking sector to keep it afloat following years of reckless lending to a bankrupt property development sector are in marked contrast to their attitude to the threat of the closure of Postbank. "The CWU has sought assurances from senior management at Postbank that the maximum number of jobs will be protected. There are significant service lines that are vital to ordinary people and are still profitable, including One Direct and Postpoint." Mr Fitzpatrick called on the management of An Post to urgently secure a replacement joint venture partner to keep Postbank open. Dun Laoghaire suffered further bad news on the jobs front recently when booksellers Hughes and Hughes announced that they were going into receivership. Last Friday, Easons said they would take on some of the Hughes and Hughes staff at Dublin and Cork Airports but uncertainty remains over the future of the remainder of the workforce, including some 15 staff who were employed at the company's outlet on Marine Road. Hughes and Hughes also employed 10 staff at another outlet in the Dundrum Shopping Centre. Hughes and Hughes, which has been in business for 26 years and is one of the State's best-known booksellers, cited an unwillingness of landlords to reduce rents, both on the high street and in airports, as a contributory factor to its closure. Separately, about 12 employees were made redundant from the Dunnes Stores food outlet on Northumberland Street in Dun Laoghaire when it closed recently. Breasal O'Caolllaí of the Dun Laoghaire Business Association described the number of local closures since Christmas as “frightening”. "In January we counted the closure of 11 businesses, including offices,” he said. “We reckon a further 10 have closed in February.” A spokesman for Postbank said: "Postbank employs 260 people and it is expected that a significant proportion of these jobs can be secured as part of this process. Postbank will be meeting with staff representatives to brief them on developments and to devise plans over the period ahead." See also ‘A positive start for Dun Laoghaire Business Week’ on page 6