Crystal job losses tip of iceberg, warns expert
Yesterday’s loss of 485 jobs at Waterford Crystal was just the tip of the iceberg, Friends First Chief Economist Jim Power said. Ireland’s future as a manufacturing hub was bleak.
“The traditional, indigenous industries have been in decline over the past few years and I see that continuing, with a loss of anything in the region of about 10,000 jobs per annum over the coming years,” Mr Power added.
Of the 1.9 million people in the Irish workforce, 232,000 are employed within the manufacturing sector, down from 236,000 at the end of last year. While the number working here for multinational manufacturing companies has grown slightly, the number in Irish-owned companies has been declining rapidly.
The closure of Waterford Crystal’s Dungarvan plant on August 15 with the loss of all 390 jobs, as well as a further 95 cuts at the company’s headquarters in Waterford city, was inevitable, Mr Power said.
“It is a sad day for Waterford and Dungarvan, but it was inevitable,” he said.
“Numerous efforts were made to keep this company in profit in the short term. In the past three years though, it has come under serious pressure as a euro company selling in a dollar region.
“Manufacturing activity in Ireland has a bleak future. The particular circumstances Waterford Crystal finds itself in are not unique. They are what all manufacturing companies in Ireland are facing. Waterford Crystal has simply become a victim of the global economy,” he added.
Ireland now needs to move away to manufacturing altogether, to the professional services sector, he suggested.
Waterford Crystal chief executive, John Foley, said rising costs had a major role to play in the decision to close down one of its two Waterford plants.
“Ireland as a source of manufacture is expensive. We can out-source from Germany and the rest of Europe at 10% to 15% cheaper,” he said.
While redundancy terms still have to be worked out, staff anticipate getting a maximum of six weeks per year worked, with fears of a company-enforced ceiling of two years’ wages.
Taoiseach Bertie Ahern said he had spoken to Enterprise Minister Micheál Martin about the job losses.
He said he regretted the announcement, particularly the impact the job cuts would have on workers and their families.
