IDA make frantic bid to salvage 900 jobs
IBM plans redundancies as work outsourced to eastern Europe
Wednesday August 01 2007
THE IDA was last night making a desperate 11th hour bid to save up to 900 jobs at a major multinational company.
Industry sources said the jobs are on the line at document processing giant Xerox (Europe).
Their work is due to be outsourced to computer giant IBM starting next month. Under the plan, they would become IBM employees but remain at their present workplace.
But now the staff have been told their new employer is already planning to make them redundant.
The jobs are at Ballycoolin industrial estate in Blanchardstown, Dublin - where Xerox currently employs more than 1,200.
The decision to outsource followed a three-month Xerox review of its operations here as it grappled with rising costs.
But the Irish Independent has learned that IBM now plans to further outsource those jobs to a cheaper location in central Europe.
It is understood that IBM is planning to introduce the redundancies in two tranches of 450 workers over the next two years.
Last night, the IDA was trying to negotiate with IBM to save as many jobs as possible.
These developments follow five weeks of negotiations involving the former Xerox workers.
Employee representatives were called to a meeting with Xerox on Monday.
They were told the jobs would be integrated into IBM's 'global delivery network'. But the Irish Independent has learned the extent of the potential losses.
The redundancies come after thousands of jobs have been lost here to cheaper locations in eastern Europe and Asia.
Workers at Xerox's centre in Dundalk, Co Louth will not be affected by the IBM deal. Higher wages, as well as growing inflation, are putting increased pressure on multinationals.
A number of call centre jobs have been lost to lower-cost economies over the past number of years.
- Ailish O'Hora
