Job Loss in Ireland Today
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sunrock
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Apparently employers have noticed that labour costs and also most other costs are cheaper elsewhere.
Some may relocate their factories to asia, if the e.u. internal market is not too important to them.
For those employers that wish to remain in the e.u..well they have seen east european workers in ireland and so if the factories are relocated to poland etc,the costs of labour etc are much cheaper.No doubt the governments of these countries are doing an "ida" on these employers with low taxes etc
Did you think these employers set up in ireland because we were special and they loved our culture.
Of course irish employees are free to work in poland for the polish rate....i doubt if many will be going.
The same thing happened in the 80s when many factories closed down when their tax free holidays and other perks expired,much to the puzzlement of our politicians.
Some may relocate their factories to asia, if the e.u. internal market is not too important to them.
For those employers that wish to remain in the e.u..well they have seen east european workers in ireland and so if the factories are relocated to poland etc,the costs of labour etc are much cheaper.No doubt the governments of these countries are doing an "ida" on these employers with low taxes etc
Did you think these employers set up in ireland because we were special and they loved our culture.
Of course irish employees are free to work in poland for the polish rate....i doubt if many will be going.
The same thing happened in the 80s when many factories closed down when their tax free holidays and other perks expired,much to the puzzlement of our politicians.
I understand the reasons for relocation to Eastern Europe etc.
What I don't understand is this: what is so special about the last couple of weeks that everyone has decided that it would be a good time to announce job losses?
Following on from Clubman's link, is it just a case that the media has decided to highlight the problem now for some (or no) particular reason?
Or are there particular factors that have caused these to happen now?
Higher ESB costs kicking in, something to do with the nature of Corporate announcements and their annual accounts etc.
Basically it appears that rather than a drip, drip, drip loss of jobs, there has been a sudden deluge of job loss, without recent precedent. Why is this?
What I don't understand is this: what is so special about the last couple of weeks that everyone has decided that it would be a good time to announce job losses?
Following on from Clubman's link, is it just a case that the media has decided to highlight the problem now for some (or no) particular reason?
Or are there particular factors that have caused these to happen now?
Higher ESB costs kicking in, something to do with the nature of Corporate announcements and their annual accounts etc.
Basically it appears that rather than a drip, drip, drip loss of jobs, there has been a sudden deluge of job loss, without recent precedent. Why is this?
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thewatcher
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The government took the eye off the ball post the 2001 liquidity splurge and let costs (of everything) get way out of hand, now the chickens are coming home to roost.
What's worst is these are high end jobs that are going and being replaced by burger flippers,pizza slicers and retail assistants.I saw figures the other day where the bottom 40% of workers are not even paying tax.
When stamp duty goes i'd love to know,where the money is going to come from !.
What's worst is these are high end jobs that are going and being replaced by burger flippers,pizza slicers and retail assistants.I saw figures the other day where the bottom 40% of workers are not even paying tax.
When stamp duty goes i'd love to know,where the money is going to come from !.
Probably just a coincedence that quite a few announcements are being made in such short succession. I reckon most companies have internally decided they are going to relocate or downsize a good 6 months or more before the decision is finally announced. So really, the question is "what's been happening over the past year to result in this spate of job loss announcements?"
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z107
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(From one of the links above)
This isn't really solving anything. As soon as the 'support for IDA Ireland' runs out, this foreign company will also start looking around at other countries for the best deal.
I remember doing a contract for Kao a few years ago. They moved out probably when their funding/tax breaks expired and Zomax moved in.
http://www.breakingnews.ie/business/?jp=MHAUKFEYKFKF
I wonder who's go it will be next?
My best guesses for the answer to the question 'why now?' - Maybe it's because the financial year end is April for a lot of companies - or maybe it's because an election is coming up and the press love a good story.
I agree with this, I remember in the 1997/2002 government bertie ahern was very much seen photagraghed opening high tech multinationals in ireland or meeting with them. What employers and especially high tech multinationals wanted was at the top of the government agenda. Now Bertie Ahern has distanced himself from this even if a high tech company opens in ireland now it is michael martin not bertie ahern who is there. Of course now the bad news out weighs the good news so michael martin again finds himself in a difficult portfolio. It is the public services where bertie ahern likes to be photographed now. It is the the huge pay rises and working conditions in the public services that are making ireland uncompetitive because now workers in the private sector are now trying to benchmark themselves with those in the public sector. But in the ultra competitive globalised world the private sector simply moves to greener pastures. As well as the multinationals I think many irish companies will move significant operations abroad.
Of course now the bad news out weighs the good news
Is there evidence that there are currently net job losses, it was my understanding that job creation was still outstripping losses?
Or is this somethig to do with media's propensity to promote negative news more often than good news, pain seems to sell.
Is there evidence that there are currently net job losses, it was my understanding that job creation was still outstripping losses?
Or is this somethig to do with media's propensity to promote negative news more often than good news, pain seems to sell.
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thewatcher
Guest
Going down that road is a fools game,even the most optimistic "economic experts" are saying the jobs we are producing now are not the same quality as what were losing.Chose to stick your head in the sand and believe what your told but the truth is out there.The services sector can only sustain this country while we keep borrowing !.As for the building game i won't even go there.
It doesn't make sense that they are low quality jobs that are being created, those low quality jobs are finding low cost economies. The quality of the Motorola jobs is hugely overhyped. They were good jobs but the market is moving a lot of software production jobs to China, India and parts of eastern Europe. The driver for the closer is primarily poor company performance.
I have no doubt that we have fewer of the competitive advantages for being the automatic choice as a corporate european base than we had 7- 10 years ago but there still is a sales pitch. A number of It firms recently announced large investments which is a positive sign.
What we will have to accept is that the aspect of the "quality" of jobs that is reducing is job security. More and more jobs and companies will come and go with greater ease and frequency
I have no doubt that we have fewer of the competitive advantages for being the automatic choice as a corporate european base than we had 7- 10 years ago but there still is a sales pitch. A number of It firms recently announced large investments which is a positive sign.
What we will have to accept is that the aspect of the "quality" of jobs that is reducing is job security. More and more jobs and companies will come and go with greater ease and frequency
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sunrock
Guest
Blaming the media for focusing in on job losses is ridiculisis.This is a big important story, election or no election...i`m sure the gov are/will do all they can to postpone/mitigate this bad news till after the election.
Can`t blame the companies involved wanting to reduce costs.....they came here because of our low taxes and greater profits here....now they are moving to a more profitable country...i guess it`s called globalisation.
This whole ida policy must be reviewed.
Personally i think they should help irish companies more.
Can`t blame the companies involved wanting to reduce costs.....they came here because of our low taxes and greater profits here....now they are moving to a more profitable country...i guess it`s called globalisation.
This whole ida policy must be reviewed.
Personally i think they should help irish companies more.
IDA is primarily focused on foreign direct inward investment. Enterprise Ireland is primarily focused on helping indigenous Irish companies.
Sunrock,
I am not blaming the media for anything, theyt are not the cause of the job losses however I regularily hear of companies that are bringing more jobs to Ireland than will unfortunately be lost in Motorola, however these gains would never make front page.
I think that there is a more interesting analysis to be carried out on the clustering of job losses, especially when they are unrelated industries. Such an analysis might justify a journalism degree.
I am not blaming the media for anything, theyt are not the cause of the job losses however I regularily hear of companies that are bringing more jobs to Ireland than will unfortunately be lost in Motorola, however these gains would never make front page.
I think that there is a more interesting analysis to be carried out on the clustering of job losses, especially when they are unrelated industries. Such an analysis might justify a journalism degree.
bearishbull
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Lower quality service jobs and unsustainable construction and public service positions are being created. Some high end jobs are being created but theres not many Irish people who will benefit from these jobs(google for instance imports best staff from across europe/world and low skilled workers have'nt qualifications to do such jobs). when jobs like procter and gamble go, where are all these low skilled workers gonna find similar employment? Our current economic success was built on high numbers employed in low skilled factories as well as in construction and high end jobs and service industry. Construction is slowing and will shed jobs as is the foreign multinational sector.
We should be setting up our own multinationals and importing best staff from likes of poland india etc as well as employing the best Irish and taking on the world not relying on foreign multinationals coming here and giving us a slice. No Irish high tech company has a turnover over 100million dollars which is worrying. I can't think of any major indigenous companies to come out of IFSC in internationally traded services.
http://www.finfacts.com/irelandbusinessnews/publish/article_10009288.shtml
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sunrock
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That may well be but there is no doubt where the big money was directed.
The well heeled professionals in the IDA/ENT IRL weren`t interested in helping small irish companies and visiting their workshops......no it was much nicer to fly off to u.s. to tempt u.s multinationals with irish tax payers money to set up here....much more glamourous,don`t you think.
Don`t forget APPLE was started in a garage.
However i do acknowledge the IDA`s success, but feel that our niche and advantages have now gone to lower cost economies who are still within the E.U. Even if we had developed some big irish multinationals, no doubt they would also be moving to cheaper cost countries.
Another problem is we won`t be getting such generous funding from the E.C in future.
Clearly the future is one of lower wages if ireland is to have low or moderate unemployment. Our government could give a lead here ,as they set the salary levels of our public servants...judging from past experience that`s not going to happen.
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z107
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I also don't understand the logic of the IDA funding foreign companies that are in direct competition with indigenious irish companies.
Perhaps not. Maybe you can post details of the IDA and EI budgets so we can compare them?
Despite a few hundred job losses in the last couple of weeks, the Irish labour market is still at full employment. 
Someone above blamed globalisation for taking these jobs away from us. Eh, wasn't it globalisation that brought them here in the first place.
When a company decides to relocate a manufacturing operation, labour and other costs of doing business in Ireland are only one factor in the decision. Other factors include road and technologhy infrastructure, the tax base, and the stability of the business environment. Even though labour costs may be cheaper in Eastern Europe, other factors outweigh this and so many companies continue to operate here.
I would suspect that the most important factor keeping low-skilled manufacturing operations here is the ready availability of labour (thanks to our influx of immigrants), a business-friendly environment, and a low tax base.
But once the numbers don't add up for any individual organisation, they will relocate. And who could blame them? A few people I know seem to think that a company should be happy enough to make a profit of say €10m from operations in Ireland, even if they could make €15m elsewhere. I say "dream on."
Someone above blamed globalisation for taking these jobs away from us. Eh, wasn't it globalisation that brought them here in the first place.
When a company decides to relocate a manufacturing operation, labour and other costs of doing business in Ireland are only one factor in the decision. Other factors include road and technologhy infrastructure, the tax base, and the stability of the business environment. Even though labour costs may be cheaper in Eastern Europe, other factors outweigh this and so many companies continue to operate here.
I would suspect that the most important factor keeping low-skilled manufacturing operations here is the ready availability of labour (thanks to our influx of immigrants), a business-friendly environment, and a low tax base.
But once the numbers don't add up for any individual organisation, they will relocate. And who could blame them? A few people I know seem to think that a company should be happy enough to make a profit of say €10m from operations in Ireland, even if they could make €15m elsewhere. I say "dream on."