Factory closure costs 180 jobs as unemployment hits 12-year high

Workers at a long-standing manufacturing plant in the south-east today became the latest casualties of the collapsing labour market, now at its worst level for 12 years.

Waterford’s ABB factory is to close after 58 years with the loss of almost 180 jobs after orders all but dried up in the property crash.

But despite the dismal jobs figures, computer giant IBM revealed a €25m investment to create 100 highly skilled software posts at its three Irish centres.

Dublin, Galway and Cork will benefit from the boost but Mayor of Waterford John Halligan warned the south-east has suffered massively, one of the worst losses at the crystal factory.

And in a direct appeal to government, he said: “How many further job losses will it require before you accept your considerable share of the responsibility for squandering the boom and ensuring that decent and hardworking people in Ireland are being hit to a unique degree by the global economic downturn?”

ABB’s manufacturing unit in Waterford built distribution transformers, a component for power supply for the construction and utility markets in Ireland and the UK.

But in a statement the firm blamed a shrinking order book for the closure.

“The closure is as a result of significantly lower orders and lack of potential business in the markets served by this unit, making it unviable,” ABB management said.

It will continue operations in Dundalk, Cork, Dublin and Lisburn, Co Antrim.

Siptu organiser Ger Malone said the union would push for the best available redundancy package when talks open tomorrow.

It is understood the average age of the workforce is 35 with many young families with high mortgages relying heavily on the jobs.

“The company said it was having to close primarily because of the decline in the property market and construction,” Ms Malone said.

“There was no demand for its products at the present time.

“Obviously we will be seeking to salvage as many jobs as we can and explore the possibility of other employment options.”

Ms Malone, who represents 114 of the workers, will hold talks with Unite and the Technical Engineering and Electrical Union, who represent the rest of the workers.

Brian O’Shea, local Labour TD, said: “The government still seems to be in denial at the extent of the unemployment problem which continues to deteriorate at a rapid pace.

“There may have been a number of minor initiatives announced by the government in recent weeks, but they are simply a drop in the ocean when we are facing this level of job losses.”

Meanwhile, Finance Minister Brian Lenihan said IBM’s expansion was a highly significant boost.

The €25m investment backed by IDA Ireland will see specialist software engineers taken on over the next three years.

“The benefits are tremendous in terms of the highly sophisticated software technology that will be developed,” he said.

“The highly skilled positions that will be created and the endorsement by a world industry leader that Ireland is helping to fulfil IBM’s global research, development and business strategy.”

The jobs will be part of the IBM Ireland Lab which focuses on research and development.