SIPTU says the news of 200 job losses at the Bausch and Lomb plant in Waterford is a "devastating blow". The announcement was made to staff this morning, while remaining staff are facing a 20% pay cut.
The company says the cost reductions are needed to keep the plant open. A consultation process with staff is to begin immediately,
The firm says this is "aimed at bringing the cost base of the Irish plant closer to that in Rochester, New York, where wage rates are currently over 30% lower".
This process follows a group wide review by the contact lens business.
The Waterford plant, which employs over 1,100 employees, supplies contact lenses and pharmaceutical products to markets around the world.
Discussions with staff and union representatives will begin next Tuesday. The Company will reach a decision in principle on or about June 17th.
The company says "Next week’s discussions will focus on proposals for a headcount reduction of approximately 200 and a pay reduction of approximately 20%".
"Our review of our manufacturing facilities shows that Waterford’s cost base is substantially out of line with other plants within the Bausch + Lomb infrastructure" said Angelo Conti, Vice President, Manufacturing.
"Given Bausch + Lomb is currently trailing its competitors in the global contact lens market with a distant fourth position in market share, the status quo is not sustainable. We are now faced with a stark choice; restructure in Waterford and secure its future, or see the plant close".
"While our preference is to retain Waterford as a contact lens manufacturing hub, we need to reach a decision either way very soon in the interests of creating a sustainable contact lens business" he added.
SIPTU representative Alan Dillon says they will now consult with the company.
This worker explained to WLRFM what they were told by management.
Michael is one of the workers at the plant. He told WLRFM he cannot afford a pay cut.
Sinn Fein Senator David Cullinane from Waterford says the announcement will have a devastating impact on the area.
Last year the company was acquired in a US$9 billion deal and 48 temporary staff, such as weekend workers, were laid off.
And in 2009 the US multinational sought 195 voluntary redundancies.
