GOVERNMENT OFFICIALS will meet with senior management at computer giant Dell today to discuss the company's future strategy in Ireland following its decision to lay off 1,900 workers at its Limerick plant.
The company, which is the largest exporter in the State, is to move its entire computer manufacturing operation in Limerick to Poland over the next 12 months as part of a massive cost-cutting strategy.
The job losses come as a major blow to the midwest region where Dell has been the largest employer and a bedrock of the economy.
Management at the computer firm also say some 1,500 jobs in firms which directly supply the plant are at risk, while local business leaders say the knock-on effects could claim anything up to 7,000 jobs in other industries.
When Dell ceases manufacturing in Limerick it will continue to employ 1,000 staff in the city in logistics and product development, and 1,300 at a sales and support operation in Cherrywood, Co Dublin.
Taoiseach Brian Cowen said Dell's decision was a major disappointment and a blow to workers and their families across the region, but emphasised that the firm remained a very significant employer.
Government officials will meet executives from the computer company to see what way the country can fit into Dell's future strategy, he said.
"We have to build now. At the next phase of Dell's development as a company, we must see to what extent can we help to locate further investment in Ireland."
Tánaiste and Minister for Enterprise Mary Coughlan also announced that a taskforce will be set up immediately to help give support to workers who have lost their jobs and promote economic development in the region.
Dell management yesterday insisted a final decision on shutting down manufacturing in Limerick was only taken earlier this week, despite widespread speculation in recent months that job losses were imminent.
Seán Corkery, vice-president of Dell's operations for Europe, the Middle East and Africa, said the decision to build the Polish plant was not part of a plan to close manufacturing in Limerick.
"At the time we needed extra capacity and wanted to be close to our customers in central and eastern Europe," he said.
Facing a backlash from Opposition TDs over the Government's failure to save the jobs, Limerick East TD and Minister for Defence Willie O'Dea claimed yesterday that IDA Ireland was working on a plan to provide up to 750 alternative jobs at Dell in the near future.
However, IDA chief executive Barry O'Leary later said it was too early to confirm any such development. "I think one would want to be very, very specific about that and we wouldn't be in a position to confirm that at this point in time," he said.
"Clearly in the same way as we have done with previous companies, we're trying to get them to do more higher valued activities but I think it would be wrong to speculate about numbers."
Despite expectations of major job losses yesterday, there was widespread shock among workers, as well as anger at the terms of the redundancy deal. Thomas McNamara (28), a father of one, said: "There are plenty of people here with big mortgages, cars, young families - there are a lot of upset people."
Workers who lost their jobs will receive six weeks' pay for every year worked, capped at 52 weeks, or around €25,000 to €30,000 for long-service workers. Bonus pay and overtime will not be included.
Mr Corkery said it was a "difficult decision but the right one for Dell to become even more competitive, and deliver greater value to customers in the region".
"At a personal level, this is a nightmare, mostly because I know all the people involved. In a sense, I've grown up with them. Obviously, it's an upsetting day. Everyone here has an individual story," he said.
Meanwhile, a payment of more than €50 million by the Polish government to Dell for a new production facility in the country has come to the attention of EU competition commissioner Neelie Kroes.
Her office is examining whether the funding represents legitimate regional development aid.
The American Chamber of Commerce, which represents US firms in Ireland, warned that other job cuts by multinational firms could be expected over the next 18 months.