News of 450 job losses stuns Cork employees

Workers at the Apple computer company in Cork have finally been told that some 450 jobs are to be shed there within the next few months.

At a meeting yesterday between senior SIPTU officials and the company, Apple executives who have consistently refused to detail to the workforce or the media what the implications would be of the company's global restructuring programme, told SIPTU officials that 390 temporary workers would lose their jobs as well as 60 permanent white-collar employees, who are not members of the union.

While full details are not clear, according to Mr Harry Carroll the SIPTU Branch Secretary in Cork, the indications are that the company will be moving its iMac computer production facilities to Singapore, Mexico and Wales, where the LG computer company, which has its headquarters in Korea, has its manufacturing operations. A company spokesman confirmed last night that production of the iMac was being contracted out internationally by Apple in a drive to make the computers more efficiently.

Mr Carroll, accompanied by officials from SIPTU, attended a meeting at Apple yesterday afternoon and later briefed the media.

This followed months of speculation concerning the future of the Apple company in Cork.

Apple's decision to move its iMac production centre away from Cork leaves some 350 SIPTU members at the plant as well as 150 non-union members, who will now be involved in the production of a more high-powered computer than the iMac the G3.

A company spokesman said late yesterday that he was confident that production of the G3 products could underpin the remaining jobs at the plant in the long-term, as Apple moved to producing these products directly to customer orders. The future would depend on demand for the products and on Apple's success internationally and the company was now performing strongly, he pointed out, although the plant would inevitably remain open to being affected by changing demand.

Sources pointed out that the G3 range, designed for the business market, had a much higher profit margin that the iMac computer, which is effectively a consumer product. The iMac computer is also made at the moment at Apple plants in Sacramento and Singapore but it now appears that production of the computer worldwide is being contracted out to LG.

A meeting has been arranged between company officials and SIPTU for 11.30 today to discuss all aspects of the company's decision. This includes the redundancy package that will be offered to staff, as well as the safeguards that might be put in place to ensure that Apple continues to have a presence in Cork.

Just four months ago a senior Vice President of the company, Mr Tim Cooke, announced at a press conference in Cork at the demise of the plant's printed circuit board facility that the iMac would save the Cork plant and ensure the future for its workforce. Mr Cooke is expected to arrive in Cork either today or tomorrow to give briefings to the workers on all aspects of the company's restructuring plans.

It is understood that the shedding of jobs will begin next March and that from then on the company will progressively reduce its workforce. Mr Carroll said he felt let down by the company and by the fact that the Tanaiste, Ms Harney, had given the workers assurances that the production of the iMac in Cork would save their jobs.

The Fine Gael TD, Mr Liam Burke, said every effort would now have to be made by the Government to ensure that this was not the first phase of a full Apple pull-out from Cork. The Lord Mayor of Cork Mr Joe O'Flynn said news of the job losses was horrendous and added that the company could have dealt with its workers better than allowing them to hear news of the impending redundancies through rumour and speculation.

The Labour Councillor on Cork's north side, Ms Kathleen Lynch said the job losses had come as a bombshell to the area and would devastate it. "It's not just Apple but three or four other firms that are depending on it. This is a terribly serious situation for Cork" she added.

In a statement last evening Ms Harney, said that the Government regretted very much the cessation of the production of the iMac in Cork and the subsequent loss of jobs. She said it was a severe blow to the workers involved but nevertheless the community in Cork could be assured that the full machinery of the State would be used to find alternative employment. The fact that Apple had insisted that its European headquarters would still be based in Cork was something to be welcomed, Ms Harney said.