Arklow was left reeling this morning following the announcement of 360 job losses. Workers at the Allergan plant were informed of the decision at a meeting in the Arklow Bay Hotel. The company will move production to Costa Rica over the next 18 months.

According to reports on East Coast Radio, some night shift staff were informed not to attend for work and management announced a meeting for all workers this morning. The plant has been in operation since 1989 and manufactures silicone breast implants. A €7.4m, 5 year investment in the Arklow facility was announced by Mary Harney (then Minister for Enterprise, Trade and Employment) in 2003.

A statement from Allergan said:

“Allergan Inc. today announced the phased closure of its manufacturing facility in Arklow, Co. Wicklow. The plant, which produces breast implants for the global market, will phase out production over the next two years, with the loss of 360 jobs. Allergan currently expects to incur restructuring and other transition related costs beginning in the first quarter of 2008 and continuing up through 2009 of between $60 million and $65 million.”

General Manager of the facility, Paul Moody stated:

“This is a sad day for all of us here in Arklow. We have a hard working team here and our employees have responded well to our increased production needs in recent years. However Allergan needs to look to the future needs of our customers. Increased demand means that we have to move manufacturing to a site that has the capability to meet this growing demand. Our plant in Costa Rica is a modern facility which will meet the future needs of Allergan’s breast implant business.”

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Costa Rica Labour Information

The following is a summary of wage rates in Costa Rica

Wages in Costa Rica are much lower than in the US and Europe. It is important to take into account that the cost of living is far lower. The minimum wages stated below are estimates based the exchange rate of the Colon to US$ at January 1st 2006. For the period of January 1st till June 30th 2006 the minimum hourly wages in Costa Rica are:

• Non-Qualified Worker: US$ 1.81
• Semi-Qualified Worker: 1.96
• Qualified Worker: 2.11
• High School level technicians 2.27
• Specialised Worker 2.43
• College technicians 2.80
• Bachelor Degree 3.43
• “Licenciatura” Degree 4.11