Covidien to cut 199 jobs in Ireland

Covidien announced yesterday that the company is eliminating 199 positions--39 temporary jobs and 160 permanent spots--from its Tullamore, Ireland plant. The site currently employs 650 people. Covidien said the cost reduction efforts are the result of a decrease in product demand due to the economic crisis. The company is offering employees an early retirement and separation package in the hopes that it will allow the reductions to be achieved voluntarily.

According to Ireland's Services, Industrial, Professional and Technical Union, Tullamore union workers recently agreed to moving to a shift arrangement attracting a lesser premium and a loss of overtime. Covidien said Irish workers were "competing with a sister plant in Mexico as well as with various third party suppliers who operate at significantly lower costs in terms of labour and overheads."

- here's the report