Waterford Crystal yesterday announced that it is to introduce short-time working at its plants at Kilbarry in Waterford city and in Dungarvan with immediate effect in a bid to cut costs and improve its working capital between now and March next year.
According to a spokesman, the company plans to introduce seven weeks short-time at both plants, with a total of 1,400 employees being affected by the new working hours arrangements, which will be spread over a seven-month period.
"In June 2004, Waterford Wedgewood plc, parent company of Waterford Crystal, announced a root-and-branch review of the business to reduce required working capital. As a result of this review, Waterford Crystal will improve its working capital over the coming months by reducing inventories through an orderly sell-off of completed stock and a slow-down of manufacturing," the company said in a statement.
The Irish Times understands that the actual implementation of the short-time working will vary from department to department in both plants but will not affect around 100 staff involved in essential maintenance work or in sales and marketing.
It is also understood that the company is looking at the possibility of staff in some departments taking a week's unpaid leave at Christmas as well as working shorter weeks, to help make up the seven weeks of savings in wages.
Mr John Foley, chief executive, said: "These measures will re-establish balance between supply and demand, The cash freed up by the reduction in working capital will be available for investment in marketing of our brands and stimulating long-term demand.
"It is regrettable that the need to introduce these short-time working measures will be the cause of financial hardship for our employees and their families. While I know this causes difficulties for our employees, I am convinced that this is the right decision and is in all of our long-term interests," he added.
ATGWU regional industrial organiser, Mr Walter Cullen, said the loss of seven weeks wages was a huge burden on their members, but he declined to comment further on the company's statement until union officials have consulted their members later this week to formulate a response to the company's proposals.
Yesterday's announcement comes following a tough trading year for Waterford Crystal which has seen its sales in the US - which together with Canada accounts for 70 per cent of its sales - badly hit by the weakness of the dollar against the euro.
However, visitor numbers and sales at its Kilbarry facility have been buoyant this year.
