Crystal redundancy ‘oversubscribed’

WATERFORD Crystal workers have queued up to take the recommended Labour Relations Commission redundancy package, with a spokesman for the company yesterday saying the offer has been “oversubscribed”.

By how many will not be known for some time and both management and unions said yesterday the deadline would have to be extended. The spokesman said yesterday’s deadline would be extended to facilitate those who have not made up their minds.

A total of 1,800 redundancies, about one-third of the Waterford Wedgwood workforce, are being sought by the group.

Of the 485 jobs on the line at the crystal operation, 350 will be from the Dungarvan plant and the rest from its Kilbarry headquarters in Waterford City.

Workers are finding it difficult to work out their options, with redeployment and full redundancy on offer.

Mercer pension consultants have been drafted in by the group to help with the process, but both unions and management said last night that the issue would not be fully resolved for some time.

With a two-week shutdown of the factory due to start on Monday, it is thought workers will use the time to figure out what course of action to take.

A potential problem for Waterford Crystal management is that the workers who volunteer to go may not be the ones they want to leave.

Redeployment options may not always suit individuals either and the company spokesman said the process was very difficult.

Given the circumstances, “we won't be rigid about it”, he said.

The Irish job cuts are part of a wider rationalisation programme announced by parent company Waterford Wedgwood, which will see the company’s workforce worldwide reduced by some 1,800.

Chairman Tony O’Reilly said he regretted the job losses, but claimed they were vital to ensure the long-term prosperity of the company and its “key heritage plants” in Ireland, Britain and Germany.

Earlier this week, Mr O’Reilly and his brother-in-law Peter Goulandris underwrote the 7-for-11 rights issue at 6 cents per share at a cost to them personally of over €90 million. Between them, the two men and their families have invested close to €200m in the ailing crystal and tableware group.

The targeted redundancies are projected to create cost savings of €90m a year for the group, starting from next year.

Waterford Wedgwood has been hit hard by the weak US dollar, which has fallen from 84c to the euro to over $1.20 to the euro over the past 18 months.

Sales in the US are vital to the group and the pick-up in the US economy should offer some comfort in the current year.