Government action to address the jobs deficit in the south-east was called for yesterday after staff at the former Ray Ban sunglasses plant in Waterford were told it was to close in June.
The surprise announcement, with the loss of 91 jobs, came after repeated assurances by the plant's Italian owners, Luxottica, that its future was secure.
Up to three months ago the plant employed 260 and was at one point one of Waterford's biggest employers with more than 400 staff.
Luxottica, which took over the plant last June, said in February a reduced workforce would concentrate on the specialised area of lens edging and finishing for the company's range of products, including designer sunglasses.
At the time it denied it was planning to pull out of Waterford and said the rationalisation being introduced was "a declaration of faith" in the operation.
Yesterday, however, it said the Waterford facility had difficulty in meeting cost requirements "despite the best efforts of the Irish workforce", and the company had decided to concentrate lens production in its Hong Kong plant "and to concurrently begin lens production in Italy".
An enhanced severance package of six weeks pay per year of service, agreed with SIPTU when 165 staff were let go in February, would be offered to employees and any outstanding grants would be re-paid to the IDA, the company added.
SIPTU branch secretary, Ms Maria Butler, said until three weeks ago the company had continued to assure staff their future was secure. However, local management had gone to Italy last week and returned with the news that the plant would close on June 16th. Staff were informed of the decision yesterday and sent home for the day.
"We're very, very disappointed after all the assurances that were given by the parent company that they were committed to Ireland and the Waterford plant," she said.
The news was seen as further evidence that the south-east was not getting the full benefits of the economic boom. It has the second highest unemployment rate, based on the quarterly national household budget survey, in the State, behind the Border region.
Live register statistics do not give a breakdown by county but an analysis of the figures by the Irish National Organisation of the Unemployed suggests Waterford and Wexford have an unemployment rate of 10 per cent, behind only Donegal (14 per cent), Mayo and Louth (11 per cent each). The national average is 7 per cent.
An INOU spokeswoman said the regional disparities should be a major cause of concern for the Government. "Job creation needs to remain the number one priority for State agencies in the BMW [border midlands west] region and the south-east.
