Fallout from Dell withdrawal report

Yesterday’s newspaper report that Dell plans to wind up it’s Limerick operation in 2009 has all the local politicians saying their piece

Immediately following the report, Fianna Fail TD Willie O’Dea denied the report, calling it a “total lie”.

He told the Irish Examiner that he hasn’t spoken to a Dell executive in over three years.  This follows a claim in the press yesterday that Dell privately informed Minister O’Dea and the IDA.

A spokesperson from Dell is quoted in the same newspaper as saying that no decision has been made and their review of it’s manufacturing design was ongoing still.

Both Kieran O’Donnell and Michael Noonan, Limerick TDs for the Fine Gael Party, demanded that Minister O’Dea make a public statememt on the claims after they were revealed yesterday.

The Labour Party TD Jan O’Sullivan called on the government to “pull out all the stops” to keep the Limerick plant going.

“If indeed Dell has signalled their intention to the Govt that they intend to withdraw from Ireland, Tanaiste and Enterprise Minister Mary Coughlan must set about the process of identifying the reasons why this is the case. She must sit down with the company and impress upon them, the nature of the calamity that would result from their departure, and she must, to the furthest extent possible, address whatever problems she can and come up with a plan of action to keep Dell here.” she sayd in a statement released this morning.

  • knowitall
    Dell will be closed and its a fact!
    1.They are saying that there is no decision has been made but what subject was the conversation about?
    2.Why Mr Cannon who came with the idea to sell or close as many Dell's factories as possible visited Ireland and was on meeting with who?-with the minister of the department of trade and employment!??Mr Dell likes to show up only on opening new lines and factories but trusts to do dirty job to someone else!
    3.Dell closed one of their two factories in USA in Texas because of the drop of the demand!There are two factories in Europe at this moment and guess which one will be closed,certainly not recently opened one in Poland!No need to explain why..

    It is the matter of time which is not up to Irish government or people to decide and of course they analyzed everything before spreading this information in the media and only 1 percent out of 100 that their idea will be turned back!

    What did you hope on?On Uncle Sam who will give you tons of gold like a lepricon?He will kill anyone himself for gold like they did with local populations in North America!And now look at south,..And you are saying about factory closure..
  • intheknow
    Flextronics are looking for 80 to 130 redundancies from their 270 workforce in Raheen. Where is willie o'dea?
  • to the point
    Its here for another year anyway
  • Mucky_takkies
    There has been a naivity on Limerick's/Ireland's part not to have foreseen this and planned for it. I was home last Xmas when there were also rumours about Dell closing and a taxi driver to the airport was saying "Dell will never close". When asked why he simply said "I have it on top authority it will never ever close". Seems our political leaders must have had the ear of the same "good authority". Have we learnt nothing from the Wang experience of the early 90's? Or Apple down in Cork? Ireland's strongest point in recent times has been our cumulative intellectual wealth which has come from tertiary-level graduates . Given just the population size alone, we were never going to be able to compete in the manufacturing sector long-term.

    While the times were good we should have been adding more in the services sector whilst also further developing of our collective intellectual capacity by encouraging PHD's, post-graduate qualifications etc. In a global economy, we need some form of differentiation and a low-skilled worker on a factory line was not the way to go when you stack ourselves up against China, India and other developing Asian nations.

    We can all talk about what went wrong, who's to blame, what to do now but spare a thought for all the families that will have this looming come Xmas. '09 is shaping up to be some seriously lean times so a thought goes out them.
  • gfdm1962
    how stupid can people be!!!!!! dell can make the same computer in poland and pay their staff there 450 euro a month, most dell employees in limerick earn that in a week with overtime included, its not rocket science , for gods sake people cop urselfs on , wishing that dell wont leave is pointless, they are already on their way........... 80% of laptop/notebook production is already being done in poland, i ave 10 years experience in connection with dell, its never been this quiet, no overtime in october in dell is unheard of .........the writing has been on the wall for a long time for those who wish 2 see it, "cant see the woods for the trees " is the case for most politicians , but some already know the outcome, ask mary harney!!!!
  • bobo
    to john,
    perhaps its you thats missing the point. Market share at the expense of profit is hardly in the interests of shareholders.
    Its very much about trying to be numero uno like they were in the 90’s except that back then it was an entirely different global landscape. Dell were poineers in many ways and quickly became number one, but things have moved on a long long way since then.

    I cant be arsed going into a global economic history of the computer manufactuiring industry but sufice to day that Dell no longer can take on the other giants to be number one without vast changes and even then it will be at a serious cost to profits and as we will see, quality, repuatation.

    If you had to endure sitting down at dells monthly meetings where they brag about the billions in profit they made (while not relecting such profit in wages), and listen to them harp on about various things like say ‘market share’ and ‘getting back into pole position’ etc etc then you might get the right idea.

    As for sayin ‘dell didnt have to come to limerick’ hahaha well by that rationale ...shesssh. Ok, tell you what, i’ll write them a Thank You card and you can have a whip-around to get them something nice.
  • To the point
    Minnie maybe the company your husband works for are no longer needed by dell,dell will be here in march and thats a fact.
  • minnie
    My husband is a contracter foe dell and they have been told most will be gone by christmas and the plant will be closed by March?????? They have actually been officially been told this. Wy havent the dell staff?
  • John
    @ Bobo

    What you seem to be missing is that Dell ceased to be about Michael Dell when they went public. Dell is about satisying the needs (want's/desires) of its board of directors and more importantly it's shareholders. There is nothing else that is important to Dell than the inflation of it's stock price which directly affects it's shareholders.
    Some of the shareholders are working in Ireland some in asia some dont work for Dell at all and are holding Dell's stock as a means to bolstering a portfolio that maybe they will use to retire, pay medical bills in the future, put a child through school, what ever the reason that they hold stock is inconsequential but the bottom line is that Dells responsiblity is to those that have invested in the company.
    They did not have to come to Limerick at all to begin with and can you imagine the state of the country had that indeed been the case?
  • bobo
    i have to laff ( sort of) , at those who 'agree with' or 'understand' Dell and their bottom line.
    They got a bloody good deal here, like many other businesses and made a great fortune out of our tax (free) incentives, grants, skilled workforce and not so high wages and lets face it, very low industrial wages.
    Now , soon as the good times are over, they want to bail out. After about 16 years of garunteed profitablity and stability, and getting everything their own way , they want to pack up and go and leave us all high and dry. No loyalty, no gratittude, just a wham bam thank you mam.

    Dells market share this year had been higher than the industry average, yet, be it greed, or ego, they want even more. The standard of quailty and quantity of prodution will not be superceeded in anyother country, gun on their backs or not, and ther quest for 'top of the heap' (ie- market share) can only come at a cost of profitability; in other words, profits will be down as a result of micheal Dell wanting to be number one. Hence the need to save money by closing even their most quality dependble plant -ie- limerick. Out sourcing is not the cure all of the business world, in fact it can prove to be very counter productive. But time will have to bear this out, meanwhile, time to find good place to shelter from the economic shit storm thats brewing.
  • minnie
    I know what country girl is saying - but what is a possible plan? - being fair - do you think if any politician could possibly come up with soemthing they would say no they couldnt be arsed. There are far more then 10k people after signing on in the last few months. This isnt just about dell........this is about unions and ourselves pushing up minimum pay and lots of other things. This is about greed and over borrowing and bonuses and big meals out with our company and keepin up with the joneses. I am sure there are things that the gov could have done like keep us as a lower maintenance economy - but we didnt want that - we wanted to have what the americans have.....but in a low populated country we never could have what they have.,...the uk are feeling it, we are feeling it.....it absolutely had to happen.....there is no other explanation. i was made redundant a few years back from a very well paid job....I had to accept the fact it happened and decide where my options lay - i could have gone for another well paid job but taken the chance of that falling very shortly too.....so I opted for the lower paid more secure job....this isnt a gloat....but its the choice I made. i dont drive a fancy new car, i dont need it to just drive in and out if work, my current car cost 2k about 4 years ago....I never ever assumed I could borrow beyond my means so I stayed the way I was...and I tell you I am happy I did now....a lot of my ex colleagues took the chance and went for the flash jobs...bought their new cars, houses etc.....and I hate to say it but they are in big trouble now.....if the government had tried to stop them at the time there woudl have been war...this isnt about government I dont think...its about us getting beyond ourselves and taking a chance. And we are paying dearly now.....I swear I am not gloating, as a matter of fact I admired my racy colleagues a few years ago and often wondered had I made a mistake....but after the shock of redundancy I wasnt taking that chance again........
  • countrygirl
    My bone of contention at the moment is how Minister O'Dea can blatlently lie to everyone. There is a difference between politics and bareface lies.
    I understand about Dell's 'bottom line' financially. This is going to be a huge blow to Limerick and a plan must be thought up fast to see what alternatives there are.
    After all we are talking about THOUSANDS of jobs and families.
  • Moira
    Dell have a big meeting 2moro with all the staff - doesnt sound good!!!!
  • me
    agree with minnie, Dell care about their bottom line, not limerick. If dell do go, it will be a major blow to limerick, but its not going to be the end of the world...Dell don't owe limerick anything, they've provided massive employement in the city for many years, did my tour of duty back in 96\97..
  • bobo
    i blame the Dell workers, if only theyd agree to work for 50 cent an hour to compete with the chinese slave camp factories we'd be sure of employment!
  • minnie
    I have a genuine queston on Countrygirls comment and I am not being smart. what would you suggest they could have done. Dell are American...their priority is money not limerick. what would any politician have done to keep them here...they have been here about 16 years now if not longer.....what way could they have been managed better? seriously - this is a genuine question.....
  • skyguy
    heard theres a big meeting on Dell to-morrow, dont know if its a comms or diffwerent meeting and the redundancy in Flex is 10% not 40%,
  • countrygirl
    That idiot O dea and Power as his sidekick don't give a shit about the Mid West and will swallow any bullshit they hear from the boys in Dublin. The brainless duo!!!
    Electorate remember all this next election as we have no representation from these brainless gombeens.
    May as well have elected a pair of trained monkeys!
  • donniedarkeo
    I remember working in Banta in the summer of 1999-often wondered what would happen to them if Dell went tits up.A few fellow students spent the summer packing Microsoft Office boxes & a few dell CDs.
    I guess me you've answered it.
    What can be done to the people that will (assuming the rumours are true) lose their jobs?Re-training??
  • me
    As per usual Sercom and Banta hear about things before Dell employees do, it's always the same, they know what hours are being done before Dell employees do.
  • chris
  • MICKEYSMOUTH
    its an expense to keep dell here,i don't think our economy will pick up unless,there is serious cost cutting on public expenditure.
  • lovely
    Sercom has this week given a weeks notice to its employees and Banta is cutting its labourforce …..both are big Dell suppliers and guess what- Bertie sorry I mean Nicky Hartery the top Dell man in Limerick has just retired on 1st Oct 08. Anyone got a computer to see if it adds up?
  • lovely
    Sercom has this week given a weeks notice to its employees and Banta is cutting its labourforce .....both are big Dell suppliers and guess what
  • Simon
    This sounds like bad news, usually where there's smoke there's fire...
  • minnie
    Flex have announced 40% job cuts in Limerick- why isnt this making the news? They are also connected with Dell
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