More than 900 staff at Gateway Computers were told yesterday to appoint employee representatives to consult with the company over future redundancies and restructuring in Dublin.
The company, which last week said it was reviewing whether Dublin was the best location for its European headquarters, told staff it was taking the action to comply with employment legislation.
Under European regulations introduced this year a company must appoint employee representatives if it plans to make more than 30 staff redundant.
Mr Mike Maloney, general manager of Gateway Ireland, said there was no doubt the number of redundancies in Dublin would exceed this figure. He also confirmed that IDA Ireland executives had met with Mr Martin Coles, senior vice-president of Gateway International, this week in the US. "We are in very close contact with the IDA and they are fully briefed on the situation," he said.
Mr Maloney also confirmed that Gateway was examining the option of outsourcing all its computer manufacturing to a specialised electronics manufacturing firms. He would not comment on whether Gateway was talking to specific companies about a deal. Two of the world's biggest firms, Solectron and Celestica, both have plants in the Republic.
Analysts have speculated that Gateway could outsource manufacturing to focus on other core activities such as branding, sales and marketing and providing solutions.
In December 750 Motorola employees lost their jobs when the mobile phone firm signed an international alliance with Celestica. About 650 Motorola staff transferred to the electronics manufacturing firm.
Gateway staff who contacted The Irish Times yesterday said the rapid action by Gateway management had raised fears that the company was planning to pull out of the Republic altogether. "The mood is very lethargic and everyone is unmotivated," said one staff member who didn't want to be named. "The US operations have had plans for months and know which way they are going but no-one here knows what is happening."
The company memo sent to staff electronically yesterday morning outlined the company divisions which could be affected by the proposed collective redundancies. It included all the divisions currently in Clonshaugh including among others; client care, consumer sales, business sales, office services, business sales support, product marketing, IT, corporate communications, human resources and finance.
A maximum of eight employees can be appointed to the representative committee following a ballot, which will be completed by Friday, August 3rd. The first consultation meeting with the company will take place on Tuesday, August 7th.
Employees have also received a memo from Gateway chief executive, Mr Ted Waitt, following last Thursday's announcement. Mr Waitt wrote that the company would move fast to outline its new strategy in Europe.
"Some people will question our viability because we are shrinking or eliminating revenue in certain segments. I say that unless we get smaller first, unless we stop doing certain things, we'll never get a chance to succeed in the areas that will be critical in the future.
"There's no doubt in my mind that we will succeed, because we're transforming Gateway in the right way," Mr Waitt wrote.
