Nec Closed Down

Joeface

not sure where to put this so if its to be moved

DID we do it to ourselves?
Have we priced out selves completely out of the running?


Im only ask this as well Where I work we have just come to realize that NEC was our second last Irish customer ,and were left with one now . This will hurt us over the next couple of months . They had been a customer of ours for nearly 10years.My point really comes to is this going to happen every where , i mean we have no natural resourse only our selves and now we have become too expensive .Do things like this partnership agreement do more damage than good ie pushing wages well beyond what the need to be. Should our union reps kinda lay off the companies in this country for a while and start fight for us on a different front ie .... go to these lower wage countries set up unions there get them better pay get them a better still of living so that were on par or so that companys can say well the cost moving isnt really worth it.
I kinda only wondering cause when a company that has been in Ireland for 30 years has to close here there is something wrong . If this happened to for example Analog Devices in limerick City thats it Limerick would be done for 2000 direct employees out a job , and just like dell half the raheen industal estate do businees with them. So while or elected reps give them selves 5 rasises in one year in line with the partnership agreement , are we just suppose to sit here and cross our fingers or touch wood hoping for the best and that everything will work out


If nothing makes sense in that sorry im dislexic

Rant over thanks for listening im mean reading .......ah which ever


ps no wage increase for me again this year ...b****x

madrab

yeah i went for a job interview there last year, glad i didnt get it now

yeah it would be better if the cost of living went down rather than wages going up, it would stop more countries outsourcing to india & china

astrofool

you mean like in Japan, where jobs are plentiful?[/sarcasm]

Kernel

The problem is not that we have outpriced ourselves in the market, as worker pay in Ireland is below most developed EU countries. The problem is that it is impossible for any developed nation to compete with newly emerging third world countries for wages and for workers rights. With manufacturing, there is a 'race to the bottom' in order to cut costs which translates into higher profit margin for the product.

I think it certainly will continue to happen, which is why the government are now trying to move away from manufacturing industries - the same thing has happened in the UK and US, where manufacturing has steadily decreased to a very low level.

The Chinese also have the advantage of a communist system and total control over their own currency.

Development of trade unions in newly emerging economies like India and China would certainly help level the playing field, but it is unlikely to happen anytime soon.

seamus

The main bulk of jobs which are being outsourced at the moment to India and China are the lower-skilled jobs, the manufacturing and low-level support jobs.

It's not perfect, but an economy can't expect to hold onto all types of jobs. Ireland has very much evolved into a services country. Primary and Secondary industry will continue to bleed from this country. High-skilled secondary jobs, such as semiconductor manufacturing will be lost occasionally, such as with NEC, but this is because of conditions worldwide, and not through a loss of competitveness in the Irish market.
We cannot hope to compete with emerging economies such as India and China when it comes to the less skilled work. Lowering wages and/or cost of living couldn't reach the point where a company would be better off staying here.

The aim should be for more higher-skilled jobs and tertiary industry, instead of trying to hold onto industries like heavy manufacturing, farming and mining.

Within 20 or 30 years, China at least will have an extremely powerful economy, but will start to face the same problems that we perceive now - loss of lower-skilled jobs to cheaper economies, probably African or former Soviet states.

dr zoidberg

Yeah exactly, the natural progression of an economy is that services provide a greater slice of the GDP, we should be concentrating on them rather than the secondary sector. Obviously it's a big blow to the people who used to work there but it was pretty much inevitable.