Xerox chiefs upbeat about Irish plants

Senior Xerox management in Ireland do not anticipate job losses at Dundalk, Co Louth, or Ballycoolin, Co Dublin, as a result of plans to cut global operating costs by $200 million (€213 million) a year.

The director and general manager for Ireland, Mr Joe Browne, conceded last night that "people have been worried", but the news so far, from the global manufacturing review, had been "very, very good".

So had the announcement yesterday that the UK lease portfolio had been transferred to GE Capital for $435 million.

There may, however, be changes in some jobs that Xerox's 2,600 Irish employees will do, particularly the 1,000 based at the Dundalk plant. Some of the low-tech operations such as making interconnect harnesses for printers and digital copiers may be transferred to lower labour cost locations. These jobs are likely to be replaced by high-tech production and research facilities. The fact that Dundalk is a new, state-of-the-art facility should work in its favour, according to local industry sources.

Similarly, the company is thought unlikely to break up its new European call centre hub at Ballycoolin. This was set up only in 1999. It replaces 52 call centres across Europe and has 11 nationalities working there. Some staff may be offered relocation but the future of the Irish operations, and the rest of the group, depends ultimately on the success of the Xerox "securitisation" strategy. This involves generating $11 billion from the cash realisation of various assets.

Besides the $435 million from the British disposal, the company has generated another $550 million from the sale of its Chinese operation to Fuji Xerox. These developments show the company's strategy is on track, says Mr Browne. "The turnaround is a reality; it's happening."

Despite the company's upbeat message, local SIPTU branch secretary Mr John King says a number of Xerox staff in Dundalk have joined the union because of their concerns.