Influence of Globalisation continues

30 May 2005

The Irish National Organisation of the Unemployed is concerned by the continued influence of globalisation on the Irish economy. The ease with which multi-national companies (MNC) can transfer its subsidiaries from Ireland to low cost economies especially given the overall cheaper labour costs in these countries continues to have a negative impact on jobs in Ireland. The latest casualties include Crown Equipment in Galway with the loss of 150 jobs as it is moving production to China and Thorsman Ireland Ltd in Drogheda, Co. Louth with the loss of 50 jobs as it is restructuring in Latvia.

Ireland has always relied heavily on inward investment from MNC’s. While these MNC’s generate employment, any restructuring of the overall company can leave Ireland very vulnerable to redundancies with the company deciding to relocate to lower cost economies.

‘It is those engaged in manufacturing type jobs that are most vulnerable as these are the easiest elements to transfer’, said Eric Conroy, General Secretary INOU. ‘A two pronged approach is required, one concentrating on maintaining Ireland’s competitiveness thereby preventing any relocation threat and the second to ensure that effective supports are in place for those workers and localities that do experience redundancies’.

The INOU welcomes the creation of a taskforce involving all the key stakeholders in Dungarvan. This follows the announcement of the closure of the Waterford Crystal plant in the town with the loss of 390 jobs locally. Such a proactive interagency approach is needed in order to create and maintain employment in the town. Similar interagency taskforces are recommended throughout the country following redundancy announcements to ensure the survival of the town and its workers.