Staff at Waterford Crystal reacted angrily yesterday to confirmation that short-time working was to be introduced at the company because of the downturn in the US economy.

Most of the 1,600 workers at Crystal's Waterford and Dungarvan plants will be affected by the measure, which is to be implemented as soon as possible, the company said.

It described the move as short-term and designed to match supply with reduced demand for its products, but said it could not predict the effect on the company's operations of the September 11th attack on the World Trade Centre in New York.

It is understood also that the company is planning to close its plants for a full week from October 8th.

The company's chief executive, Mr John Foley, said the new working arrangements would have been necessary regardless of the impact of the New York attacks. "The unknown is the events of September 11th. We don't know what the future is in the context of that."

Staff were informed of the situation at meetings held throughout the day. They expressed particular anger that details of the cutback had appeared in a local newspaper last week, before they had been informed. A spokesman for the company said management were "as upset about the leak" as staff and the company had announced its plans to the workforce as soon as it was in a position to do so.

Mr Foley said the company had outlined to employee representatives the need to match supply and demand. "We actually need to produce less to safeguard the business and a series of short-time working is what we're planning." The measure, he said, would apply "right throughout the organisation". Negotiations on the details are to take place with union representatives over the coming days. It is understood the intention is to introduce a three-day week for the majority of staff from now until Christmas.

Mr Foley acknowledged the announcement had not been well received by staff but hoped "we can resolve our problems in the spirit we normally resolve them".

Mr Walter Cullen, regional industrial organiser with the ATGWU, which represents the majority of the staff, said clarifications were being sought on a number of issues. He could not say what the reaction of the workforce would be until then. It was obvious that the downturn in the US economy had affected business but it was also true the company was still going to make a profit this year.

The contracts of a number of temporary staff will also not be renewed as part of the measure, but a company spokesman said there would be no job losses among the permanent workforce.

However, any loss of earnings at the company will have a significant impact on the local economy. Mr Frank O'Donoghue, chief executive of Waterford Chamber of Commerce, said the company was a flagship one and part of the fibre of Waterford.

"If Waterford Crystal is doing well Waterford is confident. If Waterford Crystal has a problem the vibrations are felt in the city and county and surrounding area."