NEC tells unions decision to close plant is final

Japanese electronics giant NEC yesterday told an Irish delegation, including Minister for Communications Noel Dempsey and officials from Siptu, that it would not be reversing its decision to close its plant at Ballivor, Co Meath, with the loss of 350 jobs.

Mr Dempsey told The Irish Times last night that he was disappointed at the decision of the company.

He said he would now focus on trying to secure the Co Meath plant for use by enterprises in the local community.

He said he also wanted to see the various State agencies assisting the workforce to the greatest extent possible.

Siptu Meath branch organiser John Regan said senior management at the company had listened to everything that the union had to say about the devastating effects of the closure of the plant.

However, he said management were not prepared to countenance the idea of continuing any part of the operation in Ireland.

"We knew we were swimming against the tide on this one, but we had to give it our best shot," he said.

Informed sources said both the union officials and the Minister had asked the company at the meeting at Heathrow airport for the reasons behind the closure decision.

It is understood that management said the Ballivor semi-conductor facility had been one of the company's first plants in Europe, and that the decision to close had caused "corporate heartbreak".

However, it said that it was in the best interests of the company overall.

It is understood NEC management said costs per worker in Singapore were around one-third of those in Ireland.

Sources said the management also maintained that the Ballivor plant was one of its smallest facilities, and that there were few economies of scale that could be exploited.

It is understood the management maintained that the price per unit produced in Singapore was around 40 cent compared with 60 cent in Co Meath.

It is understood that Mr Dempsey pressed the company to provide the plant to the community as a gesture to mark the contribution of the workforce.

The issue of redundancy terms for the workforce was not addressed at the meeting.