Move to India costs 63 jobs at Waterford plant

One of Waterford city's largest employers yesterday announced 63 job losses as its applied software business is being transferred…

One of Waterford city's largest employers yesterday announced 63 job losses as its applied software business is being transferred to India.

Honeywell, a New Jersey-based technology and manufacturing company, said it intended to close its HAS Ireland business, with the work moving to HAS India and external suppliers.

Honeywell said it was constantly evaluating all options to remain competitive and that the job losses were due to customers' concerns about the higher costs of labour in Ireland.

"Our priority is to find solutions that are in the best interests of our shareholders, customers and employees," the company said.

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"A total of 63 employees will be affected. The transition of work will begin in mid-April after the statutory 30-day consultation period.

"The majority of the work will be moved by the end of this year, although it is likely that some projects will extend into 2004." Honeywell also said it was committed to full and open consultation with its employees and remained committed to its Irish operations, which employ more than 800.

Honeywell is one of 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index.

The company's shares are traded on the New York, London, Chicago and Pacific stock exchanges.

Responding to the job losses, Senator Brendan Kenneally (FF) said the development was worrying, particularly in light of the reasons cited by Honeywell.

"This announcement comes shortly after 150 job losses at the Pall International plant in Tipperary," he said.

"In that case, production is transferring to Puerto Rico and Mexico.

"Honeywell are switching their applied software business to India where labour costs are considerably lower, and a highly-motivated and educated workforce is available."