Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 8 Feb 2000

Vol. 513 No. 6

Adjournment Debate. - Job Losses.

On 8 November 1998 the Bausch and Lomb company in Waterford, a considerable company employing 1,400 people, decided to sell off its subsidiary plant known as Ray Ban, which manufactures sunglasses – it was described in a Minister's reply to me at that time as a premium fashion eye wear business – to an Italian company, Luxottica. Since November 1998 the number of jobs at the Ray Ban enterprise has decreased from 350 to 95 – last week the company announced it was divesting itself of a further 165 jobs, which will reduce the number of staff to 95. There had been an erosion of the employment level in the interim although, I understand, an assurance was given at the time of the purchase that the operation would be kept going. The company pledged its allegiance and commitment to Waterford in November 1998 and again as late as November 1999 when the 165 members of staff were put on short time. Short time did not come about but the redundancies did and that was much more critical.

The employment position in Waterford city is dire. I wish to draw to the Minister's attention that there are 3,372 on the live register in Waterford, which represents 14% of the workforce, virtually three times the national average. People ask what the Government and the IDA are doing about it. An IDA office which was located in Waterford up to three years ago moved to Cork. We were told it was for the betterment of Waterford that it would be a more efficient office and would have much stronger personnel. Our experience has been quite the contrary. We have not had any new industries in Waterford city in recent years. Any increase in employment has been due to expansion of existing industries, such as Bausch and Lomb. The people of Waterford would like to know when Waterford will get new industries. Can any of the jobs in the Ray Ban division be preserved? Can the IDA persuade the Italian company, Luxottica, to remain in Waterford in considerable force? What remains is an operation called lens edging, which I do not fully understand. There is a view that this may be the end of the road for the factory in its entirety.

Promises have not been kept over the past 15 months. People have become sceptical about the future because the plant involved was highly cost effective and was brand new. It is difficult to believe it was not good enough to compete with a similar plant in Italy, America or elsewhere.

I ask the Minister for Enterprise, Trade and Employment to take an interest in west Waterford and, in particular, to look at what has happened in the town of Tallow where there was an industry called Flair Plastics Limited which is virtually on the point of closure. Some 80 people were employed there until 18 months ago, now a mere five people are looking after the stock and the premises. Will the Minister, Deputy McDaid, make a note for the Minister for Enterprise, Trade and Employment, who is not present, about the situation in Tallow which is an underprivileged area where unemployment is rife. Perhaps the IDA would put its resources at the disposal of the people of Tallow where there are a number of small enterprises which would like to use the factory that was at the disposal of Flair Plastics Limited. If Flair Plastics Limited cannot continue, perhaps others in the locality could be given the opportunity to use the premises in a manner which is conducive to employment.

I apologise for the unavoidable absence of the Tánaiste and on her behalf I thank the Deputy for raising this matter on the Adjournment. The Tánaiste shares fully the Deputy's disappointment at the announcement of the loss of a further 165 jobs at the Luxottica plant in Waterford.

Luxottica is engaged in the manufacture of Ray Ban sunglasses in Waterford. The plant, which was formerly owned by Bausch and Lomb, was established in Ireland in 1982. As part of a corporate restructuring Bausch and Lomb, primarily a medical-pharma company making eye care products, sold its Ray Ban division to Luxottica in June 1999.

Luxottica Group is a public Italian company based in northern Italy and quoted on the New York Stock Exchange. It is the world leader in the design, manufacture and marketing of high quality eyeglass frames and sunglasses in both the mid and premium price range. Luxottica's fully-owned North American subsidiary, LensCrafters, is the largest optical retail chain in the world. As at 31 December, LensCrafters operated 861 stores throughout the United States and Canada.

Following the acquisition of the sunglass plant, a restructuring of the Luxottica Group has resulted in the closure of plants in Mexico and the USA. Today the company has six manufacturing plants, five in Italy plus the Waterford facility. Discussions between IDA and senior management with Luxottica at the time of the acquisition indicated positive plans for the future of the Waterford plant with particular focus on maximising Ireland's corporate tax rates. Prior to the end of 1999, 75 redundancies were announced for the Waterford plant which also had an extended close down over the Christmas-new year period.

Since then a further review of the Irish operation has shown that the Waterford plant cannot compete with the economies of scale available to Luxottica through its centralised Italian sunglasses-frame manufacturing plants. The company now plans to restructure the Irish production plant to fully align it with the group's mainstream manufacturing methods and efficiency standards. This will involve the transfer of frame production from Waterford to Italy with the Irish plant specialising in lens edging and finishing. This restructuring will reduce the Irish workforce to 95 employees, which the company hopes will be achieved mainly through voluntary redundancy.

The restructuring of the Irish operation will mean that the Waterford plant will specialise in lens edging and finishing for the Luxottica range of products, which include the top international designer sunglasses. The company is planning to invest in extra equipment to enable the Waterford facility to develop this specialisation. The company has said that the Irish facility remains a vital part of the group's manufacturing operations and the skills and expertise which the Waterford workforce brought to Luxottica are highly appreciated.

On a more positive note for Waterford, expansions of both Allied Signal and AOL Europe were announced in 1999. These expansions are to create over 500 jobs and are a significant develop ment for Waterford and an endorsement of the success of the companies' existing facilities there.

The key objective is to ensure that alternative employment is found for those workers who are to lose their jobs at Luxottica. FÁS has already been in touch with Luxottica's general manager and has offered to put a comprehensive range of FÁS options at the disposal of the company and its employees. These include individual guidance, counselling and registration, access to the full range of FÁS vacancies, access to the current range of FÁS courses and special training course which will be provided in consultation.

The prospects for attracting new industry into the Waterford region are excellent. In this regard, NTL, the company which bought Cablelink last year, announced yesterday that it is to set up a customer management centre in Waterford City. This project will employ 250 customer service telesales and technical support staff and recruitment is to start immediately. I will bring the matter raised by the Deputy to the attention of the Tánaiste and Minister for Enterprise, Trade and Employment.

Barr
Roinn