Rising costs blamed as 320 jobs lost to cheaper location

RISING operating costs were blamed yesterday for the loss of 320 Cork jobs.

Donal Sullivan, general manager of Tyco Safety Products, Bishopstown, Cork, said despite intense efforts, over the past two years in particular, by the company and staff and assisted by the IDA, they could not reduce costs enough and subsequently the company was no longer competitive. There was no other option but to close the manufacturing plant and move to a cheaper location so that they could remain competitive in a global market, he said.

Tyco is a part of the American-based Tyco International, which took over the former Sensormatic plant on the Melbourn Road a few years ago. It has been based in Bishopstown since the early 1980s and makes security devices, including hi-tech security tags found on products like clothes and CDs.

Mr Sullivan broke the news to staff at a briefing yesterday morning. He said the jobs will go over the next 12 months.

The decision was made as part of a worldwide review of Tyco’s manufacturing operations, he said.

Just 20 high-skilled jobs will be retained in a shared-services centre which will focus on high-level planning, external manufacturing support and financial services.

Generous severance packages will be on offer as well as comprehensive outplacement services to help people find new jobs, he said.

Speaking outside the facility, Mr Sullivan said rising labour and freight costs had been a major factor in the decision to close the plant, but exchange rate movements like the strong euro against the dollar had also played a significant role.

“Tyco operates in a global market, it’s a very competitive market and there are very tough economic conditions worldwide at the moment as we all know,” he said.

“We have done everything we can to reduce operating costs but we are at a point where we can no longer be competitive.

“Everyone has tried their best but there are certain things you can’t control. Tyco has to make its own commercial decision.”

Foreign Affairs Minister Micheál Martin said the news was disappointing and it is difficult competing with low labour cost economies.

“We continue to win investment for the country and for Cork but we lose some as well to low-cost regions,” he said.

Tyco International serves customers in more than 60 countries.

In 2007, it had revenues of $18 billion and employs 118,000.