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Dáil Éireann debate -
Tuesday, 4 Mar 1997

Vol. 475 No. 7

Adjournment Debate. - Dundalk (Louth) Job Losses.

This is not the first time I have raised the issue of Keytronic Ireland Limited, one of the largest companies in Dundalk until recently. A number of months ago, it shed 316 jobs and the Minister is aware of the circumstances under which those job losses were announced. On the same day, a new industry which would make up for the lost jobs was announced but this has yet to be put in place. When Keytronic announced it would make 316 workers redundant, it also announced it was to start negotiations regarding redundancy and compensation for the employees losing their jobs. Those ran into severe difficulties and workers expressed bad faith as regards how they were treated and a bad taste was left in some people's mouths as a result.

One of the carrots held out to public representatives and the people of Dundalk was that Keytronic would retain 75 jobs in the facility — despite almost 300 jobs being lost — with a view to building on them in years to come. As this loss was such a huge jolt to the workers, their families and to Dundalk, a number of people suggested occupying the factory to ensure machinery would not be removed until they got their just entitlements. It was decided not to do that because 75 jobs would be retained and any such action would jeopardise them.

We now learn within months that the 75 jobs are now at risk and 33 are soon to be lost. We are told it is because of a lack of orders and a downturn in business. How can that be in such a short space of time? It raises questions about the negotiation of this package, what State moneys were recouped and how this company was allowed shed such a major number of jobs on the premise that it would retain 75 jobs which will now vanish in a puff of smoke. The people directly affected in the area were badly treated and were not assisted as factory employees should be when they lose their jobs. I question the conduct of State agencies involved when, within a number of months, some of the 75 jobs will now evaporate. I know the Minister took a personal interest and visited Dundalk on the issue. While he may give me the gospel according to the agencies, he must believe that something was wrong.

It was with regret that I learned Keytronic intended laying off a further five employees. In addition, it indicated that, unless orders significantly increased in the next two months, it would be forced to reduce employment from 86 to 53 by the end of April. The company was the subject of much discussion in the House last year when it announced a reduction in the numbers employed from 391 to 75 in May 1996 as a result of major restructuring worldwide, including the transfer of part of the Dundalk manufacturing operation to a sister company in Mexico.

Despite the success of the Dundalk company, in co-operation with staff and unions, in restructuring its business in 1996, market factors, especially pricing pressures, have continued to impact adversely on the Dundalk operation. As a result, the company is now forced into further layoffs. I assure the House that IDA Ireland is closely monitoring the situation and maintaining close contact with the company in the matter.

It is important to point out, however, that County Louth is still the location of an impressive array of overseas companies and the north-east has more than 40. On foot of the significant layoffs at Keytronic in 1996, I requested the industrial development agencies to embark on a vigorous campaign to bring alternative jobs to the north-east. In late 1996, two large new projects were announced. DSC Communications intends creating 475 jobs at Drogheda over the next four years and Engineered Plastic Components, Dundalk, expects to employ 300 persons by the year 2000.

IDA Ireland is continuing to actively respond to the challenge of attracting new inward investment to the north-east region through the acquisition of land for development. An advance factory is currently under construction in Dundalk and this is being promoted by IDA Ireland. A new industrial site for an advance factory is being acquired in Cavan and a developer will be sought to provide an advance factory in Monaghan as soon as a project has been secured for the Cavan factory. As I announced yesterday, the IDA will press ahead with its new regional strategy.

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