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Dáil Éireann díospóireacht -
Tuesday, 9 Feb 1999

Vol. 500 No. 1

Adjournment Debate. - Factory Closures.

I thank you Sir, for allowing me to raise once again, the factory closures in my constituency – this time the closure of the Schiesser plant in Clonmel. Friday's announcement of 150 job losses in the Schiesser plant in Clonmel was devastating news for the town and south Tipperary as a whole. Although it may be of little comfort, I join in solidarity with the workers who will shortly leave the factory for the last time. These job losses are particularly heart-breaking because south Tipperary has suffered a litany of factory closures in recent times. The effect of the massive job losses associated with the closure of companies such as Tambrands, Digital, Seagate and many others is still impacting on many hundreds of families throughout the county of Tipperary.

Despite the fact that the job task force set up to find replacement industries has had some success, it will take further massive inward investment to re-employ the hundreds of people who lost their jobs through recent devastating closures. For many people living in south Tipperary, the litany of closures is more reminiscent of the depressed era of the 1980s than the roaring late 1990s and the Celtic tiger. South Tipperary needs specific and special treatment to deal with the scale of job losses in recent times.

The people who are being let go from Schiesser must be assured of their future. Many of the workers have expressed concern that they may not have the interview skills or the relevant qualifications to compete for new jobs because, for many of them, Schiesser has been their only job. Others have suggested that their age may come against them as they try to re-enter the jobs market. I call for assurances from the Government to ease the fears which have been expressed to me in recent days by the devastated workforce of Schiesser.

A task force must be appointed as a matter of urgency to deal with the needs of the workers at the Clonmel plant. Skills assessments need to be carried out, specific training must be provided which is relevant to the needs of the workers and new replacement jobs must be found. I call on the company, which provided quality jobs in its time with good pay and conditions, to ensure that the factory premises which it is vacating will be made available through the IDA to potential investors.

In terms of finding replacement employment, I point out the need to create a good mix of employment opportunities deriving from multinational investment and indigenous industry. Over the past number of years, often there has been an over-emphasis on creating jobs through inward foreign investment. While most of these jobs have helped the economy to grow, the closure of some foreign multinationals has had a crippling effect on local towns and communities.

Clonmel in particular has suffered an over-reliance on multinationals and foreign companies. Some people who became unemployed following the closure of Digital regained employment when Seagate opened. However, they have since become unemployed again. Unemployment has a devastating effect not only on individual workers who lose their jobs but also on their families and local communities. The depth of this devastation is much worse when a community is repeatedly forced to come to terms with unemployment.

Any task force which the Minister of State may set up as soon as possible should help the redundant workers at Schiesser's plant. This should be given the remit of drawing in a mix of indigenous and foreign replacement industries. If all our eggs are put in one basket, Clonmel will never recover and regain its thriving independence. I am concerned that the jobs record in Tipperary south in recent times may act as a deterrent to young people settling in the area. While the live register figures for the entire country appear to be on a consistent downward trend, Tipperary's separate figures indicate worrying upward blips.

Clonmel and the other major towns of south Tipperary, including Carrick-on-Suir, Tipperary town, Cashel and Cahir, are all interdependent. They do not want the rug to be pulled out from under them. The people of Tipperary want to benefit from the economic boom that is evident everywhere else. They want to enjoy those fruits for some time to come. The workers from Schiesser do not want to join the dole queue and fear that they may never work again unless the Minister of State and the Government take a special interest in their case.

I share Deputy Ferris's concern about the recent development at Schiesser International Limited. The fact that the company has decided to cease operations with the loss of 135 jobs will have come as a severe blow to the workforce. I am deeply disappointed at this development.

Schiesser International was established at Clonmel in 1966 to produce men's underwear. A second factory was subsequently established in Carrick-on-Suir to meet expanding demand for the company's products. Due to competitive pressure in the clothing market, the company undertook a major global restructuring programme in 1996. The company redefined its brand and directed it towards specialist retailers. As part of this restructuring, the company consolidated its operation at the Clonmel plant and closed the Carrick-on-Suir factory.

Increased competition and intensified price pressure in the market has now led to a downturn in trade for the Schiesser company and a need for it to further restructure its organisation. Measures are being taken by the company to move production from western and southern Europe to eastern Europe. These measures have led, unfortunately, to the Schiesser group's decision to close the Clonmel operation.

There are also job losses elsewhere in the Schiesser group. By the end of spring 1999, over 1,000 production jobs will be lost at a number of Schiesser operations in Germany with further job losses expected in other facilities in Western and Southern Europe.

Undoubtedly, labour intensive sectors such as textiles, in Ireland and throughout the European Union are coming under increasing competitive pressures, especially from low cost producers in eastern Europe and South-East Asia. In an increasingly open and global marketplace, companies operating in these sectors must adjust to the challenges which are presented in order to survive and remain viable. The Deputy will have heard this statement made by me and other Ministers on other issues. The previous Government also had to deliver this unfortunate message.

While the support agencies play an important role in helping industry to develop and expand, much depends on the external trading environment and the competitive intensity of the market segment in which a company positions itself. The State development agencies, in particular IDA Ireland, Enterprise Ireland and FÁS, have been made aware of our determination to focus on the creation of new job opportunities in the regions. The excellent work of these agencies proved very successful during 1998 with two major overseas announcements for Clonmel.

Guidant Corporation announced a medical device project which will employ in excess of 500 people at full development. In addition, Clonmel Healthcare has announced a 200 person expansion of its facility which already employs 215 people. These projects will have a positive impact on employment in the town of Clonmel over the coming years. In addition, Enterprise Ireland has approved £100,000 in grant assistance towards a new enterprise centre in Clonmel. This centre comprises seven units of 1,000 square feet each, three of which are under negotiation for a project to employ 30 people.

These are positive trends for Clonmel. However, in view of the closure of the Schiesser operation, the development agencies have been asked to activate the interagency response mechanism to tackle job losses of this kind. Already the IDA has circulated its overseas offices with details of the Clonmel facility and I hope that the strenuous campaign being mounted by the various agencies will have positive results for Clonmel. FÁS has also arranged to meet with management and employees in Clonmel to undertake detailed skills profiles and plan training to enhance the employees' prospects of re-employment. I am confident that, as has been shown in the past, through the immediate response of the agencies, a successful outcome to difficult closures can be effective.

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