I am raising this matter because of the disturbing statements made in recent weeks by both the chairman and chief executive of Waterford Crystal, Mr. Don Brennan and Dr. Paddy Galvin, who expressed doubts about the continuation of the glass manufacturing enterprises at Waterford and Dungarvan. It is not my intention to be scaremongering but the threat of closure must be addressed by the Government and the relevant State agency, the IDA. Closure of these enterprises would mean the loss of 2,500 jobs and devastate the local economies of Waterford and Dungarvan. I am aware that a study into the viability of the operation is taking place at present.
I am extremely concerned that as a result of the findings of this study there may be a shattering announcement from a boardroom in New York. The company are now effectively controlled by the American bank, Morgan Stanley, in conjunction with Mr. Tony O'Reilly of the Fitzwilton Group. Sentiment does not appear to be a consideration in their deliberations, as they have shown by their manufacturing of the new Marquise range in mainland Europe. The Marquise range is a lower priced line of glassware which is machine manufactured. This glass is now being manufactured in three or four different countries in mainland Europe such as Portugal, Germany and Yugoslavia.
It has to be admitted that the technology in the Waterford plant is outdated. I am asking that the Government, together with the IDA, give every assistance to update the equipment so that the company can compete effectively in the market-place. The Government should monitor closely the company's problems and intentions. That is why I am raising this matter in the Dáil today. Specifically I am asking the Government to monitor what is taking place.
Since the strike of 1990 there has been a very poor relationship between workers and management. Short-time working has been the order of the day, inflicting severe financial hardship and stress on the workforce and their families. An initiative is badly needed to improve the position. The workers feel that their grievances are being totally ignored and that they are being starved of information as to the company's intentions. The workers' conditions have been considerably worsened by the cuts in pay-related benefits introduced by the Government in the recent Social Welfare Bill. It is bad enough for people to be on short-time work, which may involve working 12 out of 52 weeks in the year, but to have their pay-related benefit cut by £17 a week is adding insult to injury and there is very bad feeling about that legislation.
The Government should repeal this section of the Social Welfare Bill while the present position pertains in Waterford Glass. In addition, the Minister for Labour should involve himself immediately in creating a better understanding in the work-place. A labour relations officer should be appointed on a full-time basis to keep workers informed of developments within the company. I do not say that lightly, because there is a lack of information permeating through to the workforce. Public relations in the company is extremely poor and they are very dismissive of the workers' wishes. A labour relations officer should be appointed on a full-time basis to keep workers informed of developments within the company so that they would not read of decisions taken days later in the newspapers. It is important that the whole atmosphere, which at present is decidely unhelpful, be improved considerably. It would be much preferable to act now than to try to retrieve what may be an impossible position at a later date.
