NEC management adamant over plant closure

Management at NEC were categorical in insisting that its plant in Co Meath must close with the loss of 350 jobs, Siptu said today…

Management at NEC were categorical in insisting that its plant in Co Meath must close with the loss of 350 jobs, Siptu said today after a meeting in London.

Minister for Communications Noel Dempsey was part of an Irish

delegation which met with senior executives of the parent company of NEC Semiconductors in Ballivor, in an attempt to convince them to reconsider their decision to close the plant by September.

Workers left shocked yesterday when the company announced it was laying off all 350 workers at the plant which has been operating in the small Co Meath village for 30 years.

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The company blamed wage costs and its trading position for the decision to transfer work to three of its Asian plants where wages are, on average, a quarter of that which is paid in Ireland.

Siptu's Meath branch secretary John Regan said after the meeting at Heathrow Airport that management where insistent that no part of the plant could stay open.

"We knew we were swimming against the tide on this one, but we had to give it our best shot for our members and their families," said Mr Regan.

He said the delegation outlined the devastating effects the closure would have on the workers and the local community but that management were adamant the decision could not be reversed.

Issues relating to consultation with the Department of Enterprise Trade and Employment and the company's compliance with the Protection of Employment Act remain outstanding, he added.

Taoiseach Bertie Ahern said yesterday the Government would do its best to find new jobs for the 350 workers.

In a statement, parent company NEC Electronics Corporation said the decision came down to the increasingly high operating costs. NEC Electronics said it was forecasting group operating losses for the fiscal year ending March 31st, 2006, and has been stepping up cost-cutting measures to improve its financial performance.

The decision to cease production at Ballivor was one of these measures, the company said.

NEC Semiconductors is a subsidiary of Japanese manufacturing giant NEC Electronics. With 26 subsidiaries NEC employs almost 24,000 workers worldwide based at 12 plants in Japan and 14 others across the globe.

The company has been based in the Co Meath village for 30 years and was one of the first IDA-backed companies to come to Ireland.

Additional reporting: PA