Troubled crystal firm lays off 1,600 workers for a week

WATERFORD CRYSTAL yesterday laid off 1,600 workers for a week due to the weakening of global markets for the world-famous glassware.

While the company has no immediate plans for further cutbacks, a spokesman warned that this would depend on market demand.

"The short-time working is a response to the supply and demand balance. We won't be producing stuff we don't have orders for," he added.

Only about 100 of the 1,700 total staff were kept on duty to maintain essential services, including customer care staff as well as production workers on the crystal factory's visitors' tour.

Each year 350,000 people visit the factory at Kilbarry making it the fourth most popular paying tourist attraction in the country.

Last Wednesday, senior managers at Waterford Wedgwood announced the loss of 1,058 jobs at its manufacturing plants in Stoke-on-Trent.

A 120-year-old tradition will be brought to an end in the next few months when production at the two British chinaware plants is transferred to China where production costs are 70% less.

Group chief executive Redmond O'Donoghue moved to allay fears for the future of crystal production at the two Irish facilities the other is in Dungarvan insisting that "for as far as the eye can see, Waterford will be the centre of growth and the heartbeat of the business".

AT&GWU regional organiser Seán Kelly, who is leading ongoing talks between the union and management about the company's prospects, said workers in Waterford felt threatened long before the latest news from Stoke.

For the past 10 years some 65% of all Waterford Crystal has been produced in the south-east with a further 35% outsourced from producers in Germany, Hungary, Slovenia and Italy.

Mr Kelly said he wanted to see a repatriation of as many currently outsourced products as possible in Waterford. He said the union wanted a recall of people currently laid off as well as guarantees for the future security of workers.

As an indication of the company's continued commitment to the south-east, Mr O'Donoghue has pointed to a €50 million investment in the Waterford business over the past five to six years and said they would invest a further €12m in the next three months.

This investment relates to the scheduled rebuilding of the plant furnace at the Kilbarry facility.

For the past year the crystal division of Waterford Wedgwood made an operating profit of €28 million, compared with €21.7m in the previous year, a company spokesman said.

"They're doing very well, given the economic conditions in their market. Overall, Waterford Wedgwood is cutting costs and making profits, weathering the difficult economic conditions very well.

"When the conditions improve in markets, Waterford Wedgwood will gain full benefits from them, given their cost-cutting programmes."