Bausch & Lomb’s new owners have threatened to close the company’s Irish plant unless they get union agreement on a plan for a 20 per cent pay cut for staff on top of 200 job cuts.
Management at the contact lens plant in Waterford warned staff it may be forced to close the entire operation with the loss of all 1,100 jobs if the substantial cost reductions are not implented immediately.
Bausch & Lomb is one of the largest employers in the south-east. Its parent group was acquired last year in a $8.7 billion deal by Canadian group Valeant.
In a statement yesterday, the group said t was looking to bring the cost base of the Irish plant closer to that in Rochester, New York, where it says wage rates are more than 30 per cent lower.
"Our review of our manufacturing facilities shows that Waterford's cost base is substantially out of line with other plants within the Bausch & Lomb infrastructure," vice president Angelo Conti said.
“Given Bausch & Lomb is currently trailing its competitors in the global contact lens market with a distant fourth position in market share, the status quo is not sustainable.”
“We are now faced with a stark choice; restructure in Waterford and secure its future, or see the plant close,” he said. “While our preference is to retain Waterford as a contact lens manufacturing hub, we need to reach a decision either way very soon in the interests of creating a sustainable contact lens business.”
The company said discussions with staff and union representatives on the cost-cutting proposals will begin next Tuesday and that it hoped to reach a resolution by June 17th.
Minister for Jobs, Enterprise and Innovaiton Richard Bruton last night acknowledged that workers at the plant, and their families, faced an "extremely difficult and uncertain situation".
However, he noted the company had expressed a “clear preference” to keep the Waterford plant open. Mr Bruton said his department and the IDA had proposals at the ready to “substantial financial support” for investment in the plant by the company, in order to secure its future and position it for expansion, in the event that proposed restructuring is successful.
Workers at the plant were in shock at the news and deeply angry that it had been leaked before they were informed.
“They brought forward a 2pm meeting to 11;30 when they saw the TV cameras pulling up, the media knew before us,” said Michael, who was worked at the company for 12 years.
“I think it was very very poor. We found out through second hand sources, people sending us text messages asking is it true? That’s how we found out.
“I can’t afford to take a 20 per cent pay cut.” said the single father who took out a mortgage last year. “I paid my bills this morning, I’ve got €30 left out of my pay and I haven’t put so much as a scrap of food into the fridge yet and that’s all I’ve got for the week. And now they’re talking about a 20% pay cut.”
“We kind of knew something was up,” said Carol who has worked at the plant for eight years. “We thought it was going to be about short time workers because it happened a few years ago, but obviously it was a big shock to see 200 people were gone.”
Siptu, which represents some of the 1,100 workers at the plant, called on the Government to “redouble its efforts” to protect the jobs.
“Siptu members will be seeking a meeting with local management concerning the proposed redundancies,” union organiser Alan O’Leary said.
“Each and every job saved is a household spared the considerable financial worry and concern associated with losing employment”, and Siptu will be trying to work with management to “minimise job losses” during the two-week consultation period.
