The imminent closure of the Packard Electric plant in Tallaght is a major blow to West Dublin. The plant has faced difficulties over a number of years and had already laid off almost half of the 800 people it employs. However despite its troubled history the sudden breaking of the news that the entire plant was to close over the next three months appears to have taken both the Government and IDA Ireland by surprise. It is also a terrible blow to the workforce, many of whom appear to have learned the news from the media.
Packard Electric is one of Ireland's longest established overseas companies, setting up here 20 years ago. It makes electrical harnesses for the automobile industry. Facing increasing competition from low cost producers, it has had to face difficult trading conditions for several years.
Last year the Minister for Enterprise and Employment, Mr Richard Bruton, travelled to the European headquarters of Packard's parent company in Coventry in an effort to persuade the company to stay in Ireland. There appeared to be some hope when the company agreed that it might be possible to keep the plant open, if cost savings of £4 million per annum were achieved. However further difficulties between management and staff followed and it has been clear that the planned restructuring was not on track.
Matters came to a head again earlier this month, when employees staged a protest, seeking clarification, about the future of over 350 staff who had been laid off. A decision had been expected soon on this issue and management had said it was working hard to put a package together. However the parent group Delphi Packard, which is owned by the US giant General Motors, has now decided that the plant has no future.
The manner in which the news of the closure broke last night was extraordinary, with a shop steward left to tell many of her colleagues and no member of management available at the plant to clarify the position. Despite the belated apology from the company late last night, it is unacceptable that just hours after senior General Motors representatives had flown into the state and met the Taoiseach the employees learned "on the grapevine" that their jobs were to go.
The Government, it appears, had not expected the news to break until later in the week. Early this morning a Government spokesman could only promise a response later today. Earlier the Government response was "no comment". The company's parent will have made the decision on the grounds that it can manufacture product more cheaply elsewhere. Packard has made a major contribution to the economy over the years, although more recently its parent has appeared less and less committed to securing its long term future.
Management and unions at the plant have been unable to adapt to the changes in the fast moving industry, a challenge which applies to all sectors in modern industry. Fortunately, other multinational companies appear to have adapted better and to be expanding their automotive businesses in Ireland.
The news comes as a major blow to Tallaght. It will be no easy task for IDA Ireland to find a replacement industry for the area. It is now imperative that the company co operates in attracting another industry into the Packard plant and that every effort is made to find alternative work for the 800 employees in what is already an area affected by high unemployment.