State ready with plans if Dell sheds jobs, says O'Dea

THE MINISTER for Defence has acknowledged that the threat to jobs at computer giant Dell's manufacturing plant in Limerick "may…

THE MINISTER for Defence has acknowledged that the threat to jobs at computer giant Dell's manufacturing plant in Limerick "may involve a certain dislocation in the Limerick region".

Mr O'Dea also described efforts to protect jobs at Dell when he and the Tánaiste travelled last week to Austin, Texas, to meet the company's founder Michael Dell.

The Minister was speaking yesterday during a visit to Kosovo where he accompanied the Taoiseach to visit Irish troops serving under a United Nations mandate.

"We went across to Austin, Texas, to meet with the executives, including Michael Dell himself," Mr O'Dea said. "He explained something that has been in the public domain for quite some time - namely that the company is restructuring at the moment. That may involve a certain dislocation in the Limerick region," Mr O'Dea acknowledged.

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"If it does, we have put certain propositions to Michael Dell and his executives to enable us to build on whatever remains after whatever jobs are taken out," the Minister indicated.

"So, you know, we're waiting for him to come back to us on that. I can also assure you that the Government has been working behind the scenes to prepare a response in the event of any job losses in the region in the early part of the new year. We will have a detailed plan in place which will be ready to be put into effect immediately any announcement is made."

Mr O'Dea would not speculate that up to 2,000 jobs could be lost at the Limerick plant.

The mood at the Raheen facility - where some 3,000 people are employed - was far from festive yesterday given fears over the company's plans to relocate its manufacturing operation from Limerick.

It is estimated that between 10,000 and 15,000 jobs in the region are dependent on Dell's presence, where two-thirds of the workforce are employed in manufacturing roles.

Speculation over the future of Dell's workforce in Limerick has been rife since it was first reported that the company has decided to sell factories worldwide, including the Limerick plant, as part of a global restructuring plan.

It is understood Dell has decided to relocate the bulk of its manufacturing operation to eastern Europe and Asia.

An official announcement by the company is due in January and, while some jobs will be retained in research and development at the Limerick facility, it is feared that all of the 2,000 manufacturing jobs will be shed. More than 1,500 Dell employees at Cherrywood in Dublin are unlikely to be affected by the move.

"It's just devastating for everyone and what with the dole queue in Limerick at the moment, it's just awful to think about having to join it," said one Dell worker yesterday.

"All I know is they switched off the radio this morning and we weren't allowed listen to it. Everybody is just really down over it," said a female employee.

"It doesn't just affect Dell, does it?" asked another worker. "It affects all the companies that are dependent on Dell too. So it doesn't stop at 2,000 jobs. The other factories around will be all affected if Dell goes."

Labour TD Jan O'Sullivan yesterday called on the Taoiseach to take immediate action.

"I believe the Taoiseach should get involved and intervene. We are talking about 2,000 direct jobs and thousands more of indirect jobs. This is huge money in relation to the local economy and the national economy," said Ms O'Sullivan.

Minister of State Peter Power TD (Limerick East) yesterday defended the Government's efforts to limit the impact of cutbacks at the Dell facility in Raheen. "Two of our Cabinet Ministers have gone directly to Dell," he pointed out.