Disc maker sheds 100 jobs as customers look east

YESTERDAY’S announcement of 100 jobs lost at a Dublin services company has brought to more than 1,000 the number of jobs lost in companies around Ireland in just one week.

Zomax/MPO, a outsource supply chain services company announced the immediate closure of its facility at Blanchardstown, with the loss of 98 jobs. It became the latest Irish-based company to fall victim to the losing battle against cheaper costs in the Far East and Asia.

The Blanchardstown facility had been carrying out CD/DVD replication, kitting and assembly for clients in the global software and electronics industries.

In February, it announced it was issuing protective notice to 100 of its 155 staff at the company’s contact and fulfilment centre in Santry.

“The decision to close the plant has been a difficult but absolutely necessary one” Zomax/MPO managing director Mr Burke said.

“The industry sector, in which we operate, has been in decline in this country in recent years as competition from lower cost Asian and Eastern Europe operators intensifies.

“It is indicative of the global competitive landscape in which Irish based manufacturing must now attempt to operate. Currently, Blanchardstown has no new customer orders and none in prospect. The business therefore has become unsustainable.

“We have delayed this very difficult decision as long as possible in the hope that alternative business could be found. However, it would be irresponsible for us to continue any longer, and, while today’s announcement has been particularly difficult for our employees, by closing now we are able to ensure that all of them and all our suppliers are paid in full all monies and entitlements.”

IBEC, meanwhile, has raised questions about the way maths and science are taught in schools saying the country was facing a significant skills shortage if considerable additional investment was not put in the education system and there was not an immediate reform of maths and science curricula at secondary level.

ICT Ireland, the IBEC body representing the technology sector, said in light of CAO figures announced yesterday showing a major drop in the number of students choosing courses in computer and technology related subjects, immediate action was required by the Department of Education to improve the manner in which maths and science are taught.

It pointed out that of the 71 industry projects secured by the IDA in 2006, more than half involved technology companies.

Kathryn Raleigh, director of ICT Ireland, said: “Ensuring that students have transferable skills in IT and engineering is one way of ensuring that Ireland benefits from globalisation.

“The technology sector in Ireland remains one step ahead of the game, by continuing to attract high value jobs, in the form of research and development, strategic manufacturing and sales and marketing, making it an ideal sector for school leavers looking to equip themselves with a career in a dynamic and global environment.

“However, if we are to sustain this level of employment, the sector needs to have access to a large number of highly qualified young people. Unless there is significant additional investment in the education system and immediate reform of maths and science curricula at second level, the ICT sector in Ireland will suffer significant skill shortages over the next five years, which, in turn, will mean that Ireland will have failed to transform itself into a true knowledge economy.”