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EU helps former Dell workers in Ireland

19/09/2009

President José Manuel Barroso on 19 September 2009 announced that the European Commission approved an application from Ireland for assistance from the European Globalisation adjustment Fund (EGF).

The Irish application relates to 2,840 redundancies in total, of which 2,000 were in Dell Computers and 840 in eight of its suppliers and downstream producers. The plant in Limerick focussed on desktop PC sales: these dropped by 23% in the first quarter of 2009, as firms postponed their investment plans. The redundancies were a consequence of this rapid decline in demand and the company's decision to transfer 'mobile PC' (laptops, notebooks and netbooks) production from Limerick to Asian original design manufacturers, largely based in China, where production and labour costs are lower.

Dell represents 1.7% of total employment in the Mid-West Region, a region where unemployment before the Dell redundancies was already higher than the national average. The total estimated cost of the package of is almost €23 million, of which the European Union has been asked to provide EGF assistance of €14.8 million The package will help 2400 workers made redundant by offering them job guidance, support to set up their own business, training and retraining, an internship programme and education allowances and grants.