May I have the permission of the Chair to give a minute or two of my time to Deputy Gerry O'Sullivan from the same constituency.
Adjournment Debate. - Cork Factory Closure.
Is that agreed? Agreed.
The announced closure of the Western Digital plant at Dublin Hill, Cork, is another hammer blow to the morale of the north side of Cork city which has suffered so many setbacks in recent years. It will affect an area that has been devastated by unemployment reaching in excess of 70 per cent of the population in some parts of the area. The news will wreck many dreams, ambitions and hopes of the 300 people affected.
The news which broke last week was overshadowed somewhat in the media by the dramatic events within Fianna Fáil up to Sunday and then by the Progressive Democrats-Fianna Fáil play-acting on Monday. I have spoken to many of the workforce who feel betrayed and let down as they feel that the minds of their political leaders, the decision makers, were preoccupied with power struggles and political intrigue while, at the same time, their jobs and lives were being destroyed.
My purpose here this evening is not to get involved in any political mudslinging but it is my responsibility to raise this very serious issue here in the House and to ask the Minister for Industry and Commerce to outline in detail what steps he has taken in recent weeks to avert the tragic closure of Western Digital. I ask the Minister to outline what has happened to date and what he proposes to do in the next number of hours and days to avert the imminent closure of Western Digital at the end of this week.
The Minister should not speak this evening about retraining or placement of the employees in other industries. We have heard that so often in the past when other industries closed in the Cork area. Many of the victims of previous closures are still on the unemployment scrapheap.
What is required is a bringing together once again of the employment task force which was set up in Cork in the early eighties shortly after big industrial closures at that time. I ask the Minister to immediately intervene with the company in order to get a solution to this catastrophe and to set up the employment task force.
Again this evening I lament the dissolution of Fóir Teoranta which could have been a vehicle to save the Western Digital plant. I am not sure what would have happened if they were in existence but I ask the Minister to give the full facts this evening not for our sake but for the sake of the victims of this most recent tragic event. The Minister and the decision-makers should get down to real action and avoid much more play-acting.
I thank Deputy Allen for giving me an opportunity to contribute to this important debate. Some 414 jobs have gone from Western Digital since last June. My worst fears have been realised. A first-class highly skilled young workforce is now redundant. The Minister should ensure that the necessary action is taken to counteract the serious unemployment problem in Cork city particularly on the north side of Cork city. Western Digital had first-class labour relations between unions and management. The Minister should intevene to ensure that agreements already there will be honoured by the new company when they take over and, more importantly, the Minister should do everything in his power through the IDA to make sure that Cork city is given priority because there is now chronic unemployment in Cork city.
My colleague, the Minister, Deputy O'Malley, is at an engagement this evening and has asked me to take this motion.
Western Digital (Ireland) Limited was established in Cork in 1983 by Western Digital Corporation of California, USA. The company manufactures printed circuit boards for use in disk drive controllers for personal computers. The Irish company performed very well and employment grew steadily. By the beginning of this year, employees numbered approximately 400 permanent staff. In addition, 150 temporary staff had work at the plant.
Western Digital began to run into problems because their principal product line was surpassed by more advanced technology. The company have had to let employees go, and current employment stands at 270 permanent and 70 temporary employees. I have been informed that because of their current difficulties Western Digital (Ireland) Limited would cease operations. Already, Western Digital's plant at Irvine, Scotland, closed in August, 1991, with the loss of 110 jobs.
While the provision of alternative sources of employment is a matter for the day-to-day responsibility of the Industrial Development Authority and is not something in which the Minister for Industry and Commerce has any direct function, nevertheless the Minister is anxious to ensure that all possible steps are taken to minimise the impact of the closure on the workforce and on the surrounding area.
The company, with IDA assistance, are making arrangements to ensure that a minimum of damage is caused by their withdrawal. A buyer has been found for the Western Digital plant. A New York based company, Dover Electronics, has signed a letter of intent to purchase the company and the new operation will provide initial employment for 100 people. Dover Electronics is part of the $2.4 billion Dover Corporation, a worldwide company occupying leading positions in the elevator, resources, electronics, packaging and assembly automation, sub-contract assembly and technology markets, and employs over 20,000 people worldwide. Dover's acquisition of the Cork facility should allow them to address new opportunities in the European market and will provide new opportunities for the Cork plant.
The Western Digital plant in Cork represents a state of the art facility, employing advanced manufacturing technologies such as surface mount printed board stuffing. Its employees have a reputation as a highly motivated, quality workforce. In addition, the potential of the plant is further enhanced by its proximity to the National Microelectronics Research Centre. I am confident that in a plant of this calibre, with the commitment of the new owners and the assistance of the Industrial Development Authority, the new operation will act as a springboard for future success which will, I hope, result in more jobs becoming available in the future.
In addition, Western Digital Ireland is to make professional independent assistance available in job search, in personal financial planning and, where applicable, pension fund planning to all employees. I am confident that, given the calibre of the workforce, and the assistance of the company, alternative employment can be found for most in a short period.
In conclusion, I am satisfied that all possible steps have been taken to minimise the negative impact of the closure of Western Digital. All parties concerned, in particular the company and the IDA, are working to ensure this, and their efforts have already resulted in a buyer for the plant.