Some 320 workers at a Cork electronics firm are to be laid off over the next 12 months, it was confirmed today.
Staff at Tyco Safety Products (TSP), a division of Tyco International Ltd, were told by company bosses at a meeting this morning that manufacturing would cease at its Cork plant. Twenty high-skilled jobs will be retained, the company said in a statement.
Tyco manufactures anti-theft devices for shops and stock control systems and employs 340 workers at its Model Farm Road plant outside Cork city.
It is the second jobs blow to hit the county this week after it emerged 150 jobs are at risk at manufacturing firm Swissco.
The company said it was forced into restructuring the company as “part of a worldwide, comprehensive review of TSP's manufacturing operations”.
It said severance packages would be provided to affected employees.
"Despite the great efforts of our employees in Cork to lower operating costs, we believe that it is necessary to move manufacturing operations to remain competitive in the global market," said Don Lyman, Vice President of Access Control and Video Systems for Tyco Safety Products.
"We understand the impact this plan would have on affected employees and their families, and we are committed to following the employee consultation process and providing outplacement services that will lessen the disruption and make for a smooth transition."
Speaking to media at lunchtime General Manager of the Cork facility, Donal O’Sullivan said the company had been left with no choice but to cut jobs when faced with increased operating costs over the past number of years.
He said rising labour, freight and exchange rate costs had led to Tyco Safety Products finding itself in such an uncompetitive position.
Tyco worker Margaret Barrett, who had worked for the company for 11 years, said it was a nice place to work.
"We are all very sad to see it go. A lot of us here have kids and, to be honest, it is our kids' future that we are really looking to. There are so many jobs going every day. I think it is very, very hard for everybody out there."
Her fellow employee Katherine Crawford added: “I’m there about 13 years and it is a fierce shock when it comes. Some of us are lucky that we have partners working but there are some people inside there who have two people working in the same plant and that’s when it is very sad.”
Fine Gael’s innovation spokeswoman Deirdre Clune said the job losses at Tyco were a “dreadful blow “ and called on the Government to take steps to improve the worsening state of Irish competitiveness
“These job losses are more than just statistics. Real people are suffering the devastation of losing their job and the prospect of finding employment in a rapidly slowing economy”, she said.
“The Irish Government may not be able to solve the problems of the current global credit crunch but it can and must take steps to improve Irish competitiveness”, she added.
Labour Party TD for Cork South Central Ciaran Lynch called on Tánaiste Mary Coughlan to respond by setting up an expert group to identify and assist in addressing problems in companies before they reach a crisis point.
“There is little point in spending huge sums of money attracting new industries to Ireland if we find it so difficult to hang on to those that have been here for decades”, he said.
“We might have a strategy for attracting employers to Ireland, but now we need a strategy to keep them here.”