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Dell Closes Ireland Plant; 2nd Largest Employer

Wide Angle writes in with a PBS report on tough economic news from Ireland: Dell announced that it will relocate its manufacturing plant in Limerick, Ireland to Lodz, Poland. "Dell's announcement... is a severe blow to the Irish economy, which has been hit hard and fast by the global economic crisis. Dell is Ireland's second-largest corporate employer and the country's largest exporter. Nineteen hundred shift workers will lose their jobs. ...Dell's closing is not a result of the economic downturn, but of a pattern all too familiar in the United States — corporations' perennial search for cheaper labor. Since 2000 several companies, such as Procter & Gamble, Intel, Gateway, and NEC Electronics, have moved manufacturing jobs from Ireland to China, Eastern Europe, and elsewhere. When Poland joined the European Union in 2004, it became an attractive place for companies to set up manufacturing plants. ... However, Ireland has managed to maintain and attract... 'knowledge-intensive jobs.' Google's European headquarters are based in Dublin, and Facebook announced late last year that they would locate their international headquarters there. But the overall economic picture for Ireland is bleak."

18 of 494 comments (clear)

  1. willingness to relocate by bugs2squash · · Score: 5, Insightful

    Perhaps Eire should have factored in that companies agile and willing enough to relocate once to Ireland would likely be sufficiently agile and willing to move to follow the sun again.

    --
    Nullius in verba
    1. Re:willingness to relocate by Anonymous Coward · · Score: 5, Insightful

      Everyone in Eire with half a brain knew this was coming anyway...
      Those relatively low tech manufacturing jobs were only ever going to be useful as a means of bootstrapping ourselves into a properly high tech economy.
      Not sure the government knew this, but everyone smart working in tech did.

    2. Re:willingness to relocate by spun · · Score: 5, Insightful

      This is what happens when capital and goods can freely cross borders but people can't. Capital will simply chase poverty in a never ending circle around the globe. When one poor, desperate country starts to get wealthy, corporations will simply move to the next one, and let the first slip back into poverty.

      --
      - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    3. Re:willingness to relocate by Anonymous Coward · · Score: 5, Interesting

      You say "destroy national sovereignty" (and all of the restrictions therein) like it's a bad thing.

    4. Re:willingness to relocate by Klaus_1250 · · Score: 5, Interesting

      Agreed. The Dutch voted against the constitution the first time (which was a surprise to the government, especially since they invested million in a semi-propaganda campaign) and weren't given a vote for the revised treaty because the government feared a rejection again.

      Democracy 2.0. Give people a vote if you think they'll agree with you, take the vote away when you fear disagreement.

      --
      It only takes one man to change the Wisdom of the Crowd to Tyranny of the Masses.
    5. Re:willingness to relocate by rgviza · · Score: 5, Informative

      Oh like citigroup buying a spanish highway construction company with 7bn euros in bailout money from our taxes?

      http://www.thestreet.com/story/10450514/1/citi-to-buy-spanish-highway-operator.html?puc=_tscrss

      Here's the day they got our bailout check. Note the dates:

      http://www.reuters.com/article/marketsNews/idUSN2636427520081126

      Yeap we paid for it. Be pissed, very pissed.

      I can't believe regulators aren't all over them for this. What are we paying them for? What good is all this bailout money doing if they are just using it to buy foriegn companies instead of saving the jobs of the people that effing paid for the bailout? Talk about biting the hand that feeds you. That bailout money did NOT come from Europe.

      Here's the layoff announcement of the US employees:
      http://www.pcworld.com/businesscenter/article/154130/citigroup_layoff_could_decimate_it_jobs.html

      grrr

      -Viz

      --
      Don't kid yourself. It's the size of the regexp AND how you use it that counts.
    6. Re:willingness to relocate by JWSmythe · · Score: 5, Funny

          [in a heavy Indian accent]

          CSR: Thank you for calling [company] technical support, my name is "Bob", and how may I service you this fine morning.

          Customer: What?

          CSR: Good morning, and how can I be helping you.

          Customer: Morning? It's 9pm. Where the hell are you?

          CSR: We are in ... uhhh ... New Jersey.

          Customer: I'm in New York, and it's 9pm here.

          CSR: Oh, I am begging of your forgiveness for my incorrectness in that statement, we are in the other New Jersey.

          Customer: What?

          CSR: We are in New Jersey, India.

          Customer: {sigh} Ok, I'm having a problem with my some-computer 5100.

          CSR: I am very sorry that you are having discomfort with your "some-computer 500", how may I help you resolve this issue.

          Customer: No, a some-computer 5100, not a 500.

          CSR: Oh, I am begging your forgiveness [balls up some paper by the handset] there must be line noise. So you have 50 some-computer 100 that are not working. I will have to transfer you to large business support, please hold [hold music]

          Customer: WAIT!!

          Ok, that sounds funny and all, but I swear I've had so many variations of that call, ONLY with off-shore call centers. It's not a matter that they're in India, it's that the people I always end up get have poor training, terrible phone skills, and an equal American in the position should be fired. Since the companies farm out the work to the cheapest places, they're hiring the cheapest employees too. Now, the American call centers seem to be reserved for the highest level technical folks, who have years of experience, and know what they're doing. It's just a nice added advantage that they speak English well. :)

      --
      Serious? Seriousness is well above my pay grade.
  2. That's fine by Chrisq · · Score: 5, Insightful

    That's fine as long as you have a job to pay for it. If all the manufacturing and knowledge based jobs end up in the cheaper locations then can the Western Economies keep going. I know that many economists say that it is the beginning of the service economy, and we can all be rich in the west by buying and providing services for each other but I am rather skeptical. If a whole country consists of PR teams, lawyers, restaurant owners and so on can they really "generate" enough money to be able to buy their "real" things from cheap overseas sources?

    1. Re:That's fine by bugs2squash · · Score: 5, Insightful

      I guess one of the criticisms leveled at geeks is that they think they know everything...

      So in that spirit, here's my "expert" analysis of world economic matters !

      Isn't manufacturing computers just a service ? If you were Martha Stuart, you'd just get up early and grind-up the sand from the beach yourself to make your own CPU.

      To my mind there's scant economic difference between a janatorial service and a manufacturing "service".

      Furthermore; a janitor's job has to remain local and the janitor must be retained to keep the place sparkly, as opposed to a one-time manufacturing process for a durable item.

      Janitors are an extremely high-value service, that's why so many of us have a personal computer built for us but don't have our houses cleaned for us.

      --
      Nullius in verba
  3. Good for Poland by exhilaration · · Score: 5, Insightful
    Poland has very high unemployment rate, one of the highest in Europe, and is also one of the poorest countries in Europe.

    I realize that this sucks for Ireland but Poland is in far worse shape and needs the jobs just as badly if not more.

  4. Re:Numbers seem odd by Chrisq · · Score: 5, Funny

    The population of Ireland is somewhere around 6 million - what does every *else* do there?

    Farm potatoes and brew Guinness.

  5. Re:I don't care who slaps together my inspiron by MightyMartian · · Score: 5, Insightful

    Having spent over an hour and a half on the phone with Dell Canada on Monday just to get a quote (and a quote for twenty computers I might add), I'd say there is such a thing as "too cheap".

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  6. Re:Numbers seem odd by sizzzzlerz · · Score: 5, Funny

    Farm potatoes and drink Guinness.

    There. Fixed it for ya.

  7. Re:There once was... by gnick · · Score: 5, Funny

    There once was a company called Dell,
    Who saw their costs starting to swell,
    Labor in Lodz
    Attracted their jobs,
    So they told the Irish, "Go to hell".

    --
    He's getting rather old, but he's a good mouse.
  8. Re:There once was...here are the funny bits: by hierophanta · · Score: 5, Funny

    There once was a man from Nantucket
    Whose dick was so long he could suck it.
    While wiping his chin,
    He said with a grin,
    "If my ear were a cunt, I could fuck it."


    --- and here is the extended version of the original ---

    There once was a man from Nantucket
    Who kept all his cash in a bucket.
    But his daughter, named Nan,
    Ran away with a man
    And as for the bucket, Nantucket.


    part 2:

    But he followed the pair to Pawtucket,
    The man and the girl with the bucket;
    And he said to the man,
    He was welcome to Nan,
    But as for the bucket, Pawtucket.


    part 3:

    Then the pair followed Pa to Manhasset,
    Where he still held the cash as an asset,
    But Nan and the man
    Stole the money and ran,
    And as for the bucket, Manhasset.

  9. Re:Numbers seem odd by MoellerPlesset2 · · Score: 5, Informative

    Actually they're not the second-largest corporate employer. That seems to be an incorrect inference on the part of the Washington Post, because the Dell Ireland website claims they're the second-largest *corporation*.. and the metric for that could easily be something other than employees, i.e. revenue. Of course, 1900 people isn't their entire Irish workforce either.

    There are _definitely_ larger employers in Ireland. 1900 people at a single factory is enough to sustain a mid sized factory town of about 30,000 people (1/3 of Limerick). I know because I've lived in one. And I'm certain Ireland has a handful of towns that size and larger.

    But just to grab some random Irish companies out of a hat and look them up: Eircom has 6,500 employees. Bank of Ireland has 16,026.

  10. Re:There once was... by CopaceticOpus · · Score: 5, Funny

    Dell, as they moved away, laughed,
    "To pay your wages we'd be daft."
    On pink slips they wrote
    A rude little note
    "Dude, you're getting the shaft!"

  11. Re:There once was... by Remus+Shepherd · · Score: 5, Funny

    And when the Lodzians wanted their pay,
    Dell ran numbers and told them 'no way'.
    They moved to Myanmar --
    like all industry stars --
    where the workers get eight cents a day.

    But labor still cost too much wealth.
    (For some workers were older than twelve!)
    Dell's great business plan,
    could not involve man:
    They were modeled on magical elves.

    So Dell finally settled in Congo.
    Every PC they now make, as you know,
    is constructed on skimp
    by two apes and a chimp.
    (And the chimp's job security is low.)

    --
    Genocide Man -- Life is funny. Death is funnier. Mass murder can be hilarious.