21 June 2001 Edition
What will Harney do as job losses mount?
BY ROBBIE MacGABHANN
Over 1,200 workers found out last week that they are going to lose their jobs. 350 are being made redundant at Xerox Europe as they close their ink jet manufacturing plant in Dundalk. 104 jobs are to go at Smith Kline Beecham, which is closing its toothpaste production plant in Dungarvan, County Waterford. Wexford Weaving's announcement of voluntary liquidation will leave 120 people jobless, while Cobh was in shock last weekend with the announcement of the closure of the former Irish Steel plant.
Now owned by the Indian steel company IPSAT and employing 400 workers with another 200 indirect jobs dependent on the plant, the closure decision has huge implications for the local economy.
IPSAT management blamed the workers for not accepting cost cuts even though they rejected the union's cost cutting proposals. The cuts were deemed necessary because of difficult international market conditions. As Phoblacht goes to print the management and unions at the plant are still engaged in talks on a rescue plan for the company.
The spate of closures shows clearly that all is not well in the economy and the Dublin government must act to implement a new strategy to protect Irish jobs. They were able to piggy back the growing international economy with little thoughts of the consequences when demand for Irish exports in international markets dipped.
Enterprise Trade and Employment minister Mary Harney has promised ``to ensure the best possible outcome for Dundalk''. She has not explained how this is actually going to be achieved.
Sinn Féin Louth County councillor Arthur Morgan spoke to An Phoblacht after meeting workers at the Xerox plant in Dundalk last week. He expressed his shock and disappointment with the announcement of 350 redundancies at the state-of-the-art facility. Morgan called on the Dublin government to take immediate and decisive action to stem the disastrous effects of the lay-offs announced at the plant.
Morgan said: ``Having met numerous workers leaving the plant in tears this evening, it is not difficult to see that these redundancies will have huge knock on effects throughout Louth. Coming on top of the closures of the Guinness plant in the town and the Foot and Mouth crisis, this is another serious setback for Dundalk and Louth.
``Many of these workers are debt laden with mortgages and loans taken out on the assumption of long term job security. They believed that the IDA and Dublin government backing for the Xerox $1 billion investment was based on a sound business strategy.
``The Department of Enterprise Trade and Employment has a social and economic responsibility to the people of Louth, especially to the workers and families who were informed of job losses today.
``The job losses also send a clear signal to the government of how exposed the whole economy is to international market swings. They need to be developing a strategy for guiding the whole economy through this downturn. If jobs are being lost along the much vaunted digital corridor, what does it imply for the technology industries throughout the island?
``The Foot and Mouth crisis showed how quickly and decisively the government can act. We need the same level of dynamism, effort and resources now to work on this problem, not just in Louth but throughout the economy.''
Over 1,200 workers found out last week that they are going to lose their jobs. 350 are being made redundant at Xerox Europe as they close their ink jet manufacturing plant in Dundalk. 104 jobs are to go at Smith Kline Beecham, which is closing its toothpaste production plant in Dungarvan, County Waterford. Wexford Weaving's announcement of voluntary liquidation will leave 120 people jobless, while Cobh was in shock last weekend with the announcement of the closure of the former Irish Steel plant.
Now owned by the Indian steel company IPSAT and employing 400 workers with another 200 indirect jobs dependent on the plant, the closure decision has huge implications for the local economy.
IPSAT management blamed the workers for not accepting cost cuts even though they rejected the union's cost cutting proposals. The cuts were deemed necessary because of difficult international market conditions. As Phoblacht goes to print the management and unions at the plant are still engaged in talks on a rescue plan for the company.
The spate of closures shows clearly that all is not well in the economy and the Dublin government must act to implement a new strategy to protect Irish jobs. They were able to piggy back the growing international economy with little thoughts of the consequences when demand for Irish exports in international markets dipped.
Enterprise Trade and Employment minister Mary Harney has promised ``to ensure the best possible outcome for Dundalk''. She has not explained how this is actually going to be achieved.
Sinn Féin Louth County councillor Arthur Morgan spoke to An Phoblacht after meeting workers at the Xerox plant in Dundalk last week. He expressed his shock and disappointment with the announcement of 350 redundancies at the state-of-the-art facility. Morgan called on the Dublin government to take immediate and decisive action to stem the disastrous effects of the lay-offs announced at the plant.
Morgan said: ``Having met numerous workers leaving the plant in tears this evening, it is not difficult to see that these redundancies will have huge knock on effects throughout Louth. Coming on top of the closures of the Guinness plant in the town and the Foot and Mouth crisis, this is another serious setback for Dundalk and Louth.
``Many of these workers are debt laden with mortgages and loans taken out on the assumption of long term job security. They believed that the IDA and Dublin government backing for the Xerox $1 billion investment was based on a sound business strategy.
``The Department of Enterprise Trade and Employment has a social and economic responsibility to the people of Louth, especially to the workers and families who were informed of job losses today.
``The job losses also send a clear signal to the government of how exposed the whole economy is to international market swings. They need to be developing a strategy for guiding the whole economy through this downturn. If jobs are being lost along the much vaunted digital corridor, what does it imply for the technology industries throughout the island?
``The Foot and Mouth crisis showed how quickly and decisively the government can act. We need the same level of dynamism, effort and resources now to work on this problem, not just in Louth but throughout the economy.''