Lower costs in Poland behind decision to move accountancy division
Emmet Oliver
About 150 people are to lose their jobs following a decision by electronics group Philips to move its back office operations from Dublin to Poland.
Philips said lower costs in Poland were "impossible to ignore" and wages were half those in the Republic. Staff working at the European accounting services centre in Leopardstown were informed of the decision yesterday morning.
The facility will close this June, said a company statement. It hopes to provide some employees with alternative job opportunities in locations outside Ireland.
The Dublin operation provided Philips consumer electronics division with various accounting supports. This accounting operation will now transfer to Lodz in Poland.
The general manager of the Dublin site, Mr Remco Steenbergen, said: "The decision to close is directly related to the highly competitive nature of the global electronics business. This has resulted in the consumer electronics division recently announcing a business renewal strategy that requires global savings of €400 million by the end of next year.
"Our plan now is to develop the principle of shared service centres to cover other key operational divisions and to centralise that expanded activity in Poland. Poland offers cost advantages that were impossible to ignore.
"We will be working with our employees to do everything we can to assist them in the coming months and I hope that many will be able to take up the alternative job opportunities which we are able to offer," he added.
The accounting operation is one of three Philips electronics companies operating in Ireland. The announcement has no bearing on the other businesses in the Republic: Philips Electronics Ireland Ltd and Silicon and Software Systems Ltd.
The Fine Gael enterprise, trade and employment spokesman Mr Phil Hogan TD called on the Taoiseach, Mr Ahern, to convene a meeting of the social partners to ensure the new partnership deal tackles the growing problem of job losses.
Mr Hogan said the loss of 150 jobs at the Philips was further proof that the Tánaiste was failing to stem the flow of jobs from Ireland to Eastern Europe and the Far East.
"I very much regret the job losses at Philips, but I am particularly concerned that the jobs are moving to Poland. These are not yellow-pack jobs, but the type of high-value jobs the Tánaiste is supposed to be bringing to Ireland. How much more proof does the Tánaiste need that Ireland is being priced out of the jobs market by Eastern Europe and the Far East," he asked.
"Our inflation figure has been ahead of the EU average for the last six years, and almost twice the EU average for the last three years. The lack of competition in insurance, waste disposal, energy and telecommunications, and the failure to adequately resource broadband and research & development budgets is now coming home to roost for the Government," he added.
