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Finglas Company relocates to China
dublin |
worker & community struggles and protests |
news report
Thursday November 02, 2006 10:30 by John O'Neill - Irish Socialist Network
DUTCH COMPANY DUMPS FINGLAS WORKERS FOR SLAVE LABOUR
Dutch company, Omega Teknika, which makes pregnancy test kits and other healthcare products in the north Dublin suburb of Finglas, intends to cut its workforce to a minimum by moving to China for production. Dutch company, Omega Teknika, which makes pregnancy test kits and other healthcare products in the north Dublin suburb of Finglas, intends to cut its workforce to a minimum by moving to China for production. Having been informed of the decision only recently staff have been left with an uncertain future following the move. “We don’t really know when this will be happening”, one shocked employee interviewed by the local newspaper, Northside People, revealed, adding: “It came as a complete blow to us as we thought the company was doing well!” . “We are in regular talks with the company and our perception is that jobs will be lost with the relocation” an official of AMICUS, the union that represents these workers, stated.
The company, which employs around 80 people in Finglas, is yet to finalise exact details but workers have been told that the product will be made in China and brought back to Ireland for packaging and labelling. Western companies move to China every year to take advantage of cheap labour. Despite claims that free market reforms improve living standards and working conditions of workers, reports in the international media have revealed the prevalence of unsafe working conditions, low pay and long hours, usually 14 hours a day, seven days a week, all enforced by threats and violence. Safety and working conditions are so bad that companies now employ agents on a permanent basis to recruit a steady stream of people from rural China to work in the factories located in the cities. Immigrant workers, often from poorer rural regions, have little choice but to accept whatever jobs are on offer. With no independent trade unions, and little or no protection from the state-controlled official union, Chinese workers are left defenceless in the face of unscrupulous employers and their corrupt allies, the Communist Party bureaucrats .
The irony is that Omega Teknika, like many other multi-nationals, has benefited from the Industrial Development Authority’s strategy of enticing foreign investment by offering generous government grants and subsidies, tax-free exports, and, until the year 2000, a maximum 10 percent corporation tax . Long-term, fixed interest rate financing was offered through the IDA's loan agency. Ready-built factories and tax-free depreciation allowances were also available. In addition, the IDA provided training grants of up to 100 percent of costs for workers in new industries.
In reply to a query from John O Neill of the Finglas branch of the Irish Socialist Network, the Industrial Development Authority confirmed that since 1965 Omega Teknika has received over 1.5 million euros in grants from the Irish taxpayer . In real terms this actually amounts to a lot more, since buying land or building in 1965 cost little or nothing compared to today’s prices. But the real question is - When will Irish taxpayers get their investment back? And the answer is NEVER! This company, like many others has milked the system here and is now about to dump the workforce and move on to make a bigger profit at the expense of their staff who will be unemployed and the unfortunate Chinese workers who will suffer unbearable conditions simply so that Omega Teknika can make a bigger profit than they already do.
SOURCES
“Workers face uncertain future” – Northside People
See: http://www.china-labour.org.hk/public/main and http://www.wsws.org/articles/2000/oct2000/chin-o11.shtml
See: http://multinationalmonitor.org/hyper/issues/1984/06/ha....html
The IDA reply was as follows:
“Thank you for your email. Omega Teknika is an IDA supported company. IDA has provided grants to the level of circa EUR 1.5 million since the company's establishment in 1965. Shelah Brooks IDA Ireland Press and Public Relations IDA Wilton Park House”.
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Comments (12 of 12)
Jump To Comment: 1 2 3 4 5 6 7 8 9 10 11 12So what? Companies relocate/expand/contract all the time. Some close their operations in Ireland and relocate elsewhere. Some close their operations abroad and relocate to Ireland. Some expand in Ireland while contracting abroad. Some contract in Ireland while expanding abroad. Its called free enterprise. Thousands of individual companies making individual decisions, all different. I suggest you look at the overall picture. The reality is that employment is increasing in Ireland faster than in any other country in the world. In the past year the number in employment in Ireland has increased by almost 100,000 or over 5 per cent. No other country in the EU comes remotely close to this. As a result, we have full employment and 80,000 immigrants coming to Ireland annually because there are far more jobs available in Ireland than there are people to fill them. As for the daft suggestion that the matter be raised in the Dail, has the person who suggested it learned nothing from the past 20 years? Politicians have no say or control over where companies locate/expand/contract. Do you want TDs to have the final say on investment decisions of companies? That would really be a great selling-point when trying to attract multi-national companies to come to Ireland or indeed Irish companies to expand in Ireland. You might as well say that the decision of Intel to build a plant in Kildate rather than in Kentucky should be raised in the U.S. Senate. Get rid of your persecution complex.
Well John, 1.5 millon euro was given by the taxpayer to this company over 40 years. I agree its up to companies to decide where to locate but if they are going they should hand back the money they got from the State.
They shouldn't pay anything back unless that was part of a signed contract with the IDA that they pay back some grants should they close down within a specified period. I know the IDA sometimes does that with companies, but usually to stop fly-by-night companies getting grants and closing down six months later. I'd be surprised if any such contract required paying back grants after 40 years. If they've been there 40 years and employing 80 people as the original post stated, then I reckon that means they must have forked out over 100 million euros in wages in that time and probably as much again for local services in the Finglas area. So, 1.5 million euros is small beer. Instead of moaning, why don't you just accept that Ireland's industrial strategy over the past forty years of (a) low labour and corporation taxes (b) moderately generous grants (c) non-interference in the running of companies (d) flexible labour laws is wildly successful and the main reason why we're enjoying such prosperity today.
Prosperity in Dublin? Dolphin House, West Tallaght, Ballyfermot, Kilbarrack, Finglas, Ballymun?, Cherry Orchard, Teresa's Gardens, Fatima Mansions, North and South Inner City, etc. You must live elsewhere John. The only prosperity I see in my area is in the a few private apartment complexes built.
Facts about Poverty in Ireland
Poverty Rates (CSO 2004)
Consistent Poverty 6.8% 272,000 people
At Risk of Poverty 19.4% 776,000 people
Child Poverty (CSO 2004)
Consistent Poverty 9.5% 79,000 children
At Risk of Poverty 21.2% 175,000 children
Combat Poverty Agency
I live in Kilbarrack and I am a member of the Progressive Democrats,
My neighbour is a T.D while unemployment is less than 4% in Dublin North East.
I couldn't agree with you more Aidan. Northsiders certainly rule. You introduced the figure 4% and here's another lower number 2.59%. That's what your ward thought of you and the PD's. No PDers elected on the Northside. Damn right, us Northsiders rule ok.
My low vote could have been caused by my support for the local parole office in Donaghmede, I would sooner see my younger friends and neighbours who misbeave being rehabilated in a local parole office for local offenders rather than been dumped in Mountjoy.
Unfortunaly neither Fine Gael, Labour, Sinn Fein or even my good friend and Independent candidate Tom "Anti-Parole Office" Brennan supported this local office. Indeed they were quite happy to campaign on a single issue evendo it would mean that some of our younger friends and neighbours would be neglected anddumped in the prison system.
Thankfull there were a few candidates with principals and I include myself and Martin Brady FF amongst them.
Five coucillors were elected and only 2/3 can be seen in our local community.
4 per cent in a constituency that includes Howth, Sutton and other relatively comfortable areas. Tell the truth Aiden. Tell me what is the unemployment rate in Kilbarrack, then add those in receipt of one parent family payment that are not working, then add the pensioners who are surviving on a state pension alone, then add the people in receipt of invalidity payments, put them all together and you have the REAL unemployment figure.
Aiden can you confirm that you support the guy called John when he says that Companies are entitled to move to countries like China where workers have no rights to improve their profit margins? Do you support companies receiving bucket lods of cash as an incentive to locate here and agree that they should not have to return the money when they take off? I would love to know the PD position as I will enjoy informing the voters in Finglas.
Your claims on unemployment are laughable. No country in the world includes pensioners among the ranks of the unemployed, let alone some of the other groups you mention. My aunt was 102 last week. Do you want her included in the unemployment statistics to advance your case for a socialist government? Are you proposing that when you come to power you'll find her a job? The reality is that unemployment is calculated in Ireland in the same way as in every other country and, on that basis, Ireland has the lowest unemployment rate in the EU. That's why immigrants are flocking here. Which part of that do you not understand?
John, you say your aunt is 102. Can she work? I tell you, she can be of great service. have you ever seen the film "soylent green". there is always work for the elderly.
'John's' comment of 'so what?' is typical of Business School callousness. It is human beings we are talking about here. Some of them moved, as 'John' would be happy with, to this firm only last year when their previous firm, Mouldpro in Finglas, closed with ten minutes notice to the workers.
Of course, smartass, affluent, well-certified neo-cons like 'John' never have to deal with dislocation.
See here:
http://www.talkaboutchina.net/gpage3.html