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Major job losses are feared at Waterford and IBM
STAFF at Waterford Crystal's two plants are braced for a devastating blow today of up to 400 lay-offs.

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Major job losses are feared at Waterford and IBM
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STAFF at Waterford Crystal's two plants are braced for a devastating blow today of up to 400 lay-offs.

There are also fears of heavy job losses at the American computer giant IBM.

The company, one of the largest multinational employers in the state with 3,700 staff, has denied persistent rumours it is about to relocate some of its Irish operations to India and lay off around 1,700 people here.

But it did not deny reports coming from Britain that it is planning to axe 15,000 jobs throughout Europe next month as part of a massive reorganisation, in response to a slowdown in sales.

Waterford Crystal's management has arranged meetings with the 390 staff at its Dungarvan Plant at 10am today, while an afternoon meeting will also be held with the remainder of the company's 1,500 workforce at its main plant at Kilbarry, Waterford.

The company remained tight-lipped last night about the plans, with a spokesperson stating that they "do not comment on speculation".

However, sources last night suggested that all the signs point to "significant lay-offs" being announced today, with the strong possibility that the Dungarvan plant will be wound down and there may be further losses at Kilbarry. The slump in sales in Waterford Crystal's main market, the US, which is largely due to the strength of the euro, is understood to be the main reason for the job cuts.

The company has deferred a planned ?2.8m investment in rebuilding a tank furnace in Dungarvan and there are also concerns that Ireland's lack of manufacturing competitiveness may even see the company move some of its operations to the Czech Republic.

"What we do know is that the company has been experiencing difficulties and is going through a particularly tough time of late," said an industry source last night.

ATGWU Regional Industrial Organiser Walter Cullen said the union was not in a position to comment as it has not had any communication from Waterford Crystal Management. However, he was highly critical of the company's handling of the situation."It is unacceptable that our members are being left to listen to media speculation in relation to the future of their jobs," he said. In an ominous development for IBM's Irish operations, insiders claim the company plans to dismantle its Europe, Middle East and Africa corporate structure which is centred in Dublin.

The job losses, most of which are expected to be in Britain and Ireland, are in response to mounting shareholder pressure over falling stock price. One staff member in the customer services centre in Dublin told yesterday how he fears that 120 jobs there are to be relocated to India, where wages are as low as ?177 a month.

Charlie Weston and
Eugene Hogan

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