1,000 jobs go as firms move to low-cost countries

ALMOST 1,000 job losses were announced yesterday in Dublin and Kildare, with two major hi-tech firms moving operations to the Far East and eastern Europe.

US multinational firm 3Com has confirmed that 640 manufacturing jobs at its factory in west Dublin will go, while German firm Schneider Electric is cutting 265 of its permanent staff.

3Com said in a statement yesterday that it plans to outsource all its manufacturing to reduce costs. The factory in Blanchardstown is the last manufacturing site owned by 3Com, which has suffered badly since the downturn in the technology industry began. The jobs will move to lower-cost factories in Taiwan and Singapore, and 3Com said it expects the closure to be completed by the end of February. Only a small research and development unit employing about 50 people will remain.

Meanwhile, Schneider says 265 full-time and 55 part-time jobs will be phased out at its Irish operations. Schneider says one of the main products made at its plant in Celbridge is being phased out and its replacement range is not manufactured there. Some of the jobs are being moved to the Czech Republic. Tánaiste Mary Harney said she was disappointed and has asked FÁS to assist the workers in finding new jobs. But she defended the Government's record in attracting employment to the Dublin area, which has suffered a number of blows, including the closure of Gateway, Motorola and Celestica.

"I do not underestimate the challenge in finding alternative employment for these workers, but in the area of the M50 ring, I have over the last three years announced the creation of nearly 8,000 new jobs. I am confident that many of the workers may find alternative employment in the spread of these significant new investments in the region," said the Tánaiste.

However, Dublin West TD Joan Burton said the decision was an "especially crushing" blow for her constituency as the number of redundancies was worse than expected.

"The 3Com story is indicative of Ireland in recent times. First there was the promise of the Celtic Tiger, with thousands of jobs, as Ireland became an attractive location for large firms. Now we are experiencing the flip side, as the Government witnesses the same firms pulling out at a shocking rate."

She added: "this country is haemorrhaging jobs at a rate of one every 15-20 minutes. 3Com's announcement combined with An Post's confirmation that they are seeking 1,500 redundancies means this has been a particularly disastrous week on the jobs front."