Competitiveness blamed for Xerox jobs threat

News that hundreds of jobs are likely to be lost at office services firm Xerox in West Dublin is a further sign of Ireland's …

News that hundreds of jobs are likely to be lost at office services firm Xerox in West Dublin is a further sign of Ireland's failing competitiveness, Fine Gael said today.

Around 900 jobs at Xerox's international customer support centre in Ballycoolin were due to be outsourced to computer giant IBM in nearby Mulhuddart.

But both companies have confirmed that these jobs will be distributed throughout IBM offices around the world, though some could go to the company's offices in Dublin.

The company hopes to redeploy some of these workers, while others - many of whom are foreign nationals - will be offered positions abroad.

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The IDA is in discussion with the companies in an effort retain as many jobs as possible in Ireland and Labour TD Joanna Tuffey said many of the positions could yet be saved.

"The Minister for Enterprise, Trade and Employment, Micheal Martin should immediately seek a meeting with the company to discuss the situation and to see what further assistance could be provided with a view to minimising the job losses," Ms Tuffey said.

Fine Gael enterprise spokesman Phil Hogan said the Fianna Fáil-led Government had "an appalling track record in managing declining competitiveness" and had failed to recognise the "growing problem of outsourcing jobs to cheaper locations".

"A survey by the National Competitiveness Council revealed that prices for utilities and essential services in Dublin are now significantly higher than in Manchester, with waste disposal 100 per cent dearer, IT services 160 per cent dearer, electricity charges 50 per cent dearer, and insurance 40 per cent dearer.

"These figures show that Fianna Fáil has contributed to the high cost base which is feeding into serious employment pressures in our small, open economy," Mr Hogan said.

When Xerox announced the outsourcing deal last July, it sad there would be no redundancies. But workers were called to a meeting on Monday and informed that their jobs would be lost through natural attrition, redeployment and redundancy.

The plan is due to be implemented over 18 months beginning next month.

Some 350 workers at IBM plant in Mulhuddart are unaffected as are 350 workers in Dundalk, Co Louth.