While this move might make perfect sense on a balance sheet somewhere I find it shocking. so I’ve done a bit a digging into this over the last few days and have pieced together a timeline. In January 2009 Dell announced that they are moving their production from the plant in Limerick, Ireland to Lodz, Poland. This would lead to 2000+ people losing their jobs. Several months afterwards it emerges that the Polish government used 54.4 million euro (EU funds) as a payment to entice Dell to move their production facility to Poland. This cannot be seen in any other light than unfair state interference in the free market resulting in direct the loss of jobs in Ireland.
Now as it stands that is bad enough, however to add insult to injury Dell has now announced that they are selling the Lodz plant to Foxconn (a manufacturer of computer components and supplier of Dell). Now I might be a terrible cynic but I strongly suspect that the plans to sell the plant to Foxconn were already being hatched when the announcement was being made that the Limerick plant would be shut down. The move to Poland put the production capacity in a low-cost country making it much easier to offload. So that’s 54.4 million euro spent on facilitating the sale and possibly increasing the value of the sold asset. Put this in comparison to the paltry 14.5 million that the EU has pledged to Limerick to facilitate retraining off and job creation for those laid off by Dell. It’s a 69.9 million euro exercise with only one benefactor: DELL.
Put that in comparison to Dells’ complete refusal to do anything to create employment for those laid off in Limerick. I personally spoke to them repeatedly about support for the Greenhouse Incubator and they wouldn’t even let us have some of their used office furniture. Direct appeals to Sean Corkery & Michael Dell fell on deaf ears. I also know of several other organisations that approached them for a support for job-creation initiative. All were turned away…..
The effects actual effects of Dells move from Limerick are quite often underestimated. While the direct job losses were 2510 the total effect for the region is far worse: “it will cost the region 9,500 jobs and suck €117m out of the local economy, a secret Irish government report admits”.
And what does the Irish government do? It has a lot of meetings, sets up a task force that doesn’t really do anything and pisses whatever little money they get from the EU down the drain. This country is being run by imcompetent & inept morons and it’s high time we got rid of them and replaced them with a valid, long term alternative!