Dáil Éireann debate -
Wednesday, 3 Mar 1999

Vol. 501 No. 4

Adjournment Debate. - Job Losses.

Ms Clune

Yesterday it was announced that 120 jobs would be lost at Bourns Electronics Ireland in Mahon, Cork. The company employs more than 450 people. To the majority of us the announcement came out of the blue and it has created great worry and uncertainty for the remaining workers in Bourns and for those employed in the manufacturing of electronics in the greater Cork area. This announcement follows the loss of 450 jobs in Apple. The 120 people who are to lose their jobs in Mahon are not mere statistics. They are real people who depend on Bourns for their livelihoods and to meet their financial commitments. The jobs are being lost to Cork because the products can be produced more cheaply elsewhere. This follows the pattern of other job losses in the Cork region and it is a source of great worry and concern.

I am disappointed the Tánaiste and Minister for Enterprise, Trade and Employment is not here to address this issue. When 450 jobs were lost in Apple there seemed to be no recognition of the scale of the problem by the Tánaiste. She merely said she regretted the job losses. Her regrets are of little use to those who have lost their jobs.

A third blow fell on Cork today when Liebert announced the loss of 150 jobs at its plant in Bishopstown. The Minister must tell us what is to be done about this. Will these people be retrained? What does the Tánaiste propose to do in consultation with the IDA to address this problem in Cork?

Mr. Coveney

In the last six weeks Cork has suffered a huge number of job losses. Yesterday redundancies were announced in Bourns Electronics and today we hear that Cork has lost another 150 jobs at the American owned Liebert International plant based in Bishopstown. Cork is already reeling from the loss of 450 jobs at Apple's Holyhill plant and 65 jobs at Universal Foods in Midleton. This week, 120 job losses were announced in Mahon and 150 in Bishopstown. Cork is not a big enough city to absorb these losses by providing alternative jobs quickly.

Like Deputy Clune, I too am disappointed at the Tánaiste's absence this evening. Did she have forewarning of the redundancies at Bourns and the closure of the Liebert plant and, if so, did she take action to prevent or reduce the number of job losses? More importantly, now that the jobs seem to have gone, will she ensure the 300 remaining jobs at Bourns are secure? Is she willing to prioritise Cork and the surrounding area for job creation over the next six to 12 months to make up for the 750 job losses suffered in the last six weeks?

The majority of job losses were in the manufacture of low value-added products and production has moved to areas with cheaper sources of labour. In the case of Bourns Electronics, for example, the surface mount multifuse product has moved to Asia.

We must continue to introduce the production of high value-added products to Ireland, and to Cork in particular. I look forward to hearing the Minister's comments.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

I thank the Deputies for raising this matter on the Adjournment. Like the Tánaiste, I share their disappointment that Bourns Electronics plans to let go 120 workers at its plant in Mahon, Cork.

Bourns Electronics has been located in Mahon, County Cork since 1980. The company currently employs more than 430 people in the manufacture of passive electronic components which are mainly used in computer and telecommunications products. Its parent company is Bourns Incorporated which is headquartered in Riverside, California in the USA. Bourns Incorporated has been in operation since 1947 and is recognised worldwide as a leader in the design, development and manufacture of electronic components with applications in automotive, telecommunications, computers and peripherals, aerospace and a variety of industrial and consumer products. Bourns Incorporated employs more than 3,500 people worldwide and operates manufacturing facilities in six different countries with sales and distribution support throughout North and South America, the Asia-Pacific and Europe.

Bourns has been operating in Ireland for almost 20 years and the Irish plant is making major contributions to the Bourns global strategy. The company has made significant investments in Cork, primarily in manufacturing, but also including a consolidated European warehouse, a European financial centre, a technical support centre for Europe, new product development and a customer service centre.

However, the Bourns Corporation has indicated that it can no longer sustain the manufacture of low margin, cost sensitive products in Cork and that these products will now be manufactured at its plants in Costa Rica and China. This transfer of production will mean a reduction in employment at the Cork plant of 120 people through voluntary redundancies. Cork, nevertheless, will continue as a key manufacturing site for Bourns Incorporated based on high volume, highly automated products. In addition, it will provide medium volume, highly automated products that require significant process controls.

While the Bourns announcement is clearly a major blow to the workforce affected, employment prospects generally are positive in Cork at present. Over the past two years 28 IDA backed projects involving more than £600 million worth of investment have been announced and are under way in Cork. These projects have the potential to create nearly 7,000 new jobs and more than 1,000 of these jobs are to be filled this year. In addition, the IDA will significantly upgrade its Kilbarry business park to improve and enhance its appearance and prospects of attracting new investments. The construction of a high quality 25,000 square feet advance factory is also due to commence there shortly. Last month two significant projects were announced for Cork. A £10 million IDA supported expansion plan for the healthcare company, Nycomed Ireland in Carrigtohil, County Cork was announced which will create an additional 150 jobs. In addition, Siemens, one of the world's largest electrical and electronics companies is to establish a customer call centre which will support the European market for the company's communications devices and e-commerce initiatives. This project will create 150 new jobs over four years and recruitment has already commenced.

I assure the House, on my own behalf and on behalf of the Tánaiste who cannot be here because she is chairing an industrial development meeting, that the IDA will continue actively to promote Cork for overseas mobile investment and that every assistance will be given to employees at Bourns to find new employment. Members can be assured that the IDA, which looks after international mobile investment here, and Enterprise Ireland, which looks after the indigenous sector, and the Cork county and city enterprise boards and other State agencies, including FÁS, will do their utmost to redress this situation as quickly as possible.