ParfumGigi@aol.com

31 janvier, 2008 13:11

Number out of work will rise as property slump begins to bite

By Charlie Weston and Ailish O'Hora

Thursday January 31 2008

Hundreds of workers were told their jobs were gone yesterday as a leading investment company predicted that unemployment could rise to 6pc in the next year, a level not seen here since 1999.

Hibernian Investment Managers said that the spike in joblessness would dampen demand for goods and services and cause consumer confidence to fall further.

The grim predictions on unemployment were made as two special meetings took place in Arklow following on 360 job losses at the Allergan pharmaceutical plant.

Also yesterday, Governor of the Central Bank John Hurley told an Oireachtas Committee that unemployment would rise this year with the construction industry hardest hit.

"Unemployment is low overall at 4.6pc but we would see that increasing in the course of this year but it will still be a moderate increase," he said.

Workers at the Allergan plant expressed dismay after being told by management that the factory will be closed by June 2009.

Allergan Pharmaceuticals Ireland is based in Westport in Co Mayo, but also has offices in Dublin and a second manufacturing plant in Arklow.

The Arklow factory mainly manufactures silicone and saline breast implants, but also supplies components to other Allergan facilities worldwide.

Management said the production of breast implants at the Arklow facility will be phased out over two years and transferred to its operation in Costa Rica but the plant in Westport, where 750 people are employed, or a division in Dublin, will not be affected, the company said yesterday.

Job losses like those at Allergan would send unemployment shooting up from its current level of 4.6pc to 6pc by early next year, economist with Hibernian Investment Managers Fiona Hayes said.

But the property slowdown would have the biggest impact on the employment figures with more and more layoffs in the building sector expected.

Yesterday, a senior executive at Allergan in Arklow said a huge level of investment would have been needed to keep the plant going.

Paul Moody, general manager at Allergan Arklow said: "Increased demand means that we have to move manufacturing to a site that has a capability to meet this growing demand."

Reacting to yesterday's job losses, SIPTU general president Jack O'Connor said: "The Government has been slow to react to the growing threat to the manufacturing sector in terms of retraining."

- Charlie Weston and Ailish O'Hora