Waterford Crystal may extend holiday shutdown to avoid job cuts

MANAGEMENT and unions at Waterford Crystal are considering an extended summer holiday shut-down in a bid to avoid job cuts at its plants in Waterford city and Dungarvan.

The speculation about an extended summer break comes as the company's year-end balance sheet shows the pension fund deficit has risen to

162 million. The figure is the exact same as the company's stock market value last Friday morning at a share price of 21 cents.

The pension fund deficit is one of several problems facing the company as the trading environment for luxury consumer goods continues to deteriorate.

Speculation is rising that further cost cutting will involve greater levels of outsourcing of manufacturing to low-cost Eastern European countries, at the expense of jobs here and in Britain.

The company shut down its facilities for seven days last week as part of its move to balance demand and supply for its products. A further shutdown was also planned later this summer. But sources within the plant say the summer closure in late July will be extended by a week.

"A review is to take place at the end of June. One of the likely options for the company seems to be adding on to the annual shutdown at the end of July, extending into the middle of August," one source said. ATGWU official Sean Kelly was in meetings with staff yesterday.

"A whole series of meetings with our members, including committees and shop stewards, are taking place all of this week.

"The talks are not just focused on the shutdown last week but on the overall situation. We will be in a better position to comment next week," he said.

Waterford Wedgwood said in March that it could not rule out a return to short-term working for its 1,600 staff, particularly given the war on Iraq. The conflict had a huge impact on the luxury goods market particularly in the US where the Waterford brand is particularly strong.

Group chief executive Redmond O'Donoghue said the company is increasing its market share, reducing its debts and will make a profit this year.

The company, which has plants in Dungarvan in Co Waterford and at Kilbarry in Waterford city, also put its staff on short-time two years ago and 100 voluntary redundancies were announced in March of 2001.