Investment plea after Waterford Crystal jobs blow

The Government was today urged to double efforts to attract investment to the south east after Waterford Crystal axed 485 jobs at its world renowned glass making plants.

With 390 jobs to go with the closure of the 30-year-old Dungarvan factory and 95 employees facing redundancy at the flagship plant in the city local politicians and trade unionists demanded action.

Following a special meeting of management and staff where John Foley, Waterford Crystal chief executive, confirmed the cuts ATGWU representatives claimed company bosses had breached workers’ trust.

Jimmy Kelly, senior shop steward, said: “There is huge anger at the way the company dealt with this. People feel that they (management) should have come with a survival plan. People feel betrayed.”

John Deasy, Fine Gael TD for the area, claimed the losses would have a catastrophic knock-on effect on the local economy.

“400 jobs are being lost in a town of approximately 8,000 people, equivalent to 5% of the population of the town,” he said.

“This is absolutely devastating to the local economy, as these were well-paid jobs which helped to support a lot of other jobs in the immediate area. That kind of hit for a town like this is extreme.”

Mr Deasy attacked the Government’s proposed decentralisation scheme for the area which he claimed was nothing but a distant memory.

After months of speculation workers were told the Dungarvan plant would shut with the loss of 400 highly skilled well paid jobs.

Production of the world famous crystal will switch to the flagship plant in Kilbarry, Waterford City, where the company employs around 1,000 people.

But under the radical cost cutting measures 85 jobs will go at the city factory.

Management at the luxury goods group revealed it planned to cut 1,800 jobs at its operations in Ireland and the United Kingdom.

The cost saving measures will leave the firm employing around 9,500 staff and it claimed the cuts were needed in order to return to “sustainable profitability”.

Talks on a redundancy package and a closing date for the Dungarvan plant will begin tomorrow. It is understood workers could be offered a deal of six weeks pay for every year of service, while the factory could shut its doors for good as early as October.

Martin Cullen, Transport Minister and TD for the region, insisted state agencies, in particular the IDA and Enterprise Ireland, had to be mobilised to attract new jobs.

“I will join with employee representatives, business groups and all interested parties to turn this situation around,” Mr Cullen said.

Micheal Martin, Enterprise Minster, said: “I think ultimately the aim is to consolidate and underpin future manufacturing in Waterford for the next number of years and I think it’s important that we do that and that the company do that.”

The company said it expected to cut 615 jobs in the UK – mostly in the Stoke area in the Midlands – by the end of the Royal Doulton integration programme. The remaining 324 posts will be lost in overseas operations.

With falling demand from the United States and Canada, which accounts for 70% of sales, the Waterford Wedgwood group has suffered from a drop in profits for three years.

In June of last year the company revealed profits in the crystal making division had fallen by 89% to €3.1m for the first six months to the end of March.

It is understood difficult trading conditions due to a weak dollar cut 50 million euro from profits in the last two years. And increased competition from cheaper cost bases in Eastern Europe and China added to problems.

Sir Anthony O’Reilly, Waterford Wedgwood chairman, insisted the job cuts and investment plan were necessary to safeguard the company’s future.

“The task is clear but the challenge is great: we must ensure that our cost base matches revenue levels so that the company is returned to sustained profitability,” he said.

“I am determined that Waterford Wedgwood will become the low-cost operator in its sector. We believe that this is attainable following the implementation of this restructuring action.”

Brian O’Shea, Labour Party TD for the county, said the cuts were devastating.

“It is up to the Government to do everything it possibly can to minimise the job losses and to minimise the economic damage these job losses could cause,” he said.

Arthur Morgan, Sinn Féin TD, said both Government and management had to share the responsibility for the callous dumping of hundreds of workers.