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There's no riddle to Dell's Limerick move

As the shockwaves of Dell's dreaded but expected withdrawal from Limerick manufacturing reverberate around Ireland's mid-west region, some lessons are emerging. The big theme emerging in many reports and commentaries is that the boom in semi-skilled assembly line jobs is well and truly over. There doesn't appear to be any other …

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Anonymous Coward
Anonymous Coward

(untitled)

Welcome to the world of the Global Economy, where the economic arguments in favour of no trade barriers and ease of movement of jobs, staff, and products overwhelmingly convince Top Management of their benefit; but which turn normal citizens into a simple resource, unworthy of further consideration. Where elected governments have to bow to the pressures of unelected (by the people) international merchants, or else find their country attracts no investment. Where any desire to protect one's country's citizen's interest is frowned upon as attempting to reduce the potential wealth that the multinationals can attract.

In any equitable solution there is usually an element of balance. But if one side is powerful enough to force though their own interests then the, "this is good we need it everywhere at any cost", argument tends to hold sway.

@AC 15:47 and @ the article

AC 15:47 - I agree. But not in such a fundamentatist way. The reduction of trade barriers means that the work can easily flow to the cheapest place, or (as we have seen at places like JCB) pressure and threats can reduce the cost of labour where the jobs ~currently~ are. There are few barriers to this behaviour and while it creates opportunities for some, it creates disadvantages for others.

@ the article... Apple's Leopard OS is reaping the benefits .. really? with Apple's giant 6% of the dektop and 4% of the laptop market? Making around 5% of the overall 'PC' market, that's not exactly ''reaping''. That's not to say it isn't better than Vista....

Anonymous Coward
Black Helicopters

HP

From what I recall, HP make more than just printer cartidges in Ireland. Lots of weapons tech shit going down there. Something about missile guidance systems according to a couple of staffers. Pure hearsay, but it fits with the ridonkulous security they got going on there.

Paris Hilton

That's the way the cookie crumbles

You attract companies to Ireland with lots of tax breaks and low costs, and then you are surprised when those companies move to other countries where they can get new tax breaks and low costs?

Maybe there was a time when Ireland was a lot like what you see in John Ford's "The Quiet Man", but Ireland is a developed economy now. The fact is that unless you are a highly qualified machinist or manufacturing technician, you can't expect to keep reliably employed in a developed-economy factory anymore. Between automation and low-cost/low-regulation Asian and Eastern European countries, the days when the manufacturing working class was the major constituency in a developed economy are done and gone. The only thing that I see changing this is if carbon taxes become so universal and strict that it starts to become uneconomical to manufacture in low-wage companies and then ship the resulting products thousands of miles to their ultimate markets.

At least 6 week of severance per year of service is pretty generous.

Good luck to the ex-Dell employees in Limerick!

Paris--because I am sure that given their new-found free time, laid-off Dell employees will have a chance to follow her adventures on the various TV shows she's involved in.....

Stop

When is this shell game going to end?

This will all stop once imported goods are priced with their labour component grossed up to the local equivalent wage. "Semi Skilled" in the EU is the same as "Unskilled" in some third world country except you get to the place of work on paved roads.

This may harken to the bad old days of "protectionism" but it seems to me that it all becomes a vicious cycle. We earn wages here so that we can earn enough to buy goods made elsewhere and everyone keeps quiet because everyone in the chain needs to get their cut?

We consumers are trained rats to keep the middleman alive.

Anonymous Coward
Flame

Answer: layoff Dell (and no severance)

"Dude, you got diddled by Dell!" Why are people still buying this tatty company's tat?

Boffin

Did Vista contribute to Dell’s Limerick closure?

@Norfolk Enchants Paris: I'm no Mac fanboy but in June 2008 Apple notebook sales were up 61% since the first quarter of 07. Not a bad growth rate by any standard.

http://www.theirishpenguin.com/2009/01/12/did-vista-contribute-to-dells-limerick-closure

Watch out for Dell in the UK too..

Given the way things are going for Dell, there's a strong possibility that they could also close their UK facilities too. They have centres in Glasgow (employs 810) and Bracknell (employs 1410). A review is currently taking place and is expected to be completed in 6 months!

Glasgow is unlikely to close as it only opened in 2005 and closure would result in the requirement to repay a load of grant aid.

Bracknell however, is expensive to run and it could be a fairly big hit to the local area if it closes.

The PC industry simply isn't viable at UK or Irish (or US or Western European) wage levels anymore. They're a generic product that is simply churned out at the cheapest price. That kind of large scale electronics manufacturing will go east.

Anonymous Coward
Go

Sum musings ...

1 - don't blame Dell

I guess Mr Dell is taking decisions based on the purchasing patterns of his customers. Perhaps if we were all able to say "Yes please, charge another £50 to ensure that local employees job security is maintained. In fact, make it £100 so that every separate nation has its own dell plant in situ."

So really it might be our own selves that have to shoulder ultimate responsibility?

2 - The Irish government

(if it has any sense) might just say "Here's an order for umpteen Dell computer systems." "Oh? Your thinking of closing shop? Why don't we help you to mothball it with minimal staff until the order book is burstng again?"

Thumb Up

@ Maryland, USA

LOL

"I thank my stars that I work in a country where a company can kick me out on the street with no compensation: It's this very mobility that makes them more willing to hire me in the first place."

Your logic is priceless!

Keep drinking the company kool-aid!

@ The Irish Penguin

Yes, that's true. But 'up 61%' took them from 4% of the market to 6%. So while it looks like a great number, they're still way down there. And let's not forget that their 'desktop' products were cannibalised somewhat, which is why their overall market share is around 5% and holding.

I'd say that if anything is 'reaping benefits' it's Linux.

Anonymous Coward
Anonymous Coward

Skilled workers and degrees

As more people move to degree level educational institutions there is, it seems, an inevitable decline in the overall quality of the graduates. Many degree programs in Canada now produce "graduates" who would not have managed to pass twenty or thirty years ago. The programs that seem to suffer the most from this degradation in the quality of the graduates are those that require, or did in the past require, a strong math/science background; especially true in the computer science field.

Ireland would do itself a huge favour by not allowing their Universities to succumb to the everyone needs a degree so we'll just change the course material so that everyone can pass mentality.

Now, as a master of stating the obvious, the problem with a weakened curriculum is that those one supposes can do the job they were employed to do either take much longer, produce lower quality work, or simply cannot do the job. High-tech employers are now leaving Canada to find University graduates with the skills to do the job at hand, not to pay lower wages. Some are moving to America, because even with their, overall, low standard of primary and secondary they are still able to produce many quality university graduates.

Good Luck to Ireland. Don't succumb.

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