BUSINESS REACTION:THE MIDWEST was last night described as being in an "emergency situation" as it braced itself for the knock-on effect caused by the loss of some 1,900 jobs at Dell in Limerick.
Business groups said employment must be generated to compensate for the "major blow". They also called on the Government to take action to restore Ireland's reputation as a competitive place to conduct business.
It is estimated that up to 10,000 jobs in subsidiary companies across the region rely on Dell for survival and last night, staff at one of its major suppliers in Limerick claimed that 400 staff were put on protective notice following the announcement, although the company refused to confirm this.
Dell's significance to the local economy was highlighted last year when a number of local firms, such as Flextronics and Banta Global Turnkey, announced they would be downsizing their workforces after the computer firm's decision to shed 400 temporary staff. Fears have also been raised for workers at other firms that rely heavily on Dell, from catering suppliers to cleaning contractors.
Mayor of Limerick Councillor John Gilligan said Dell's announcement had sent the midwest into an "emergency situation".
"It's not just the 1,900 manufacturing jobs lost in Dell but the thousands more dependent on Dell through supply industries. We have to do everything we can to save these jobs," he said.
Limerick city manager Tom Mackey paid tribute to Dell's workers, whom he described as committed and professional. He said he was hopeful that another manufacturer or employer in the high-tech area would recruit some of the affected workers.
The announcement also prompted statements from Bishop of Limerick Donal Murray, who called on the community to support those who are facing unemployment and Limerick Chamber's chief executive, Maria Kelly, who said the midwest was still open for business.
Meanwhile, ICT Ireland, the Ibec group representing the high-tech sector, said the Government must make every effort to support the remaining jobs in Dell and to create training and employment opportunities for those laid off.
"It is vital that the Government responds decisively to the current economic challenges to ensure Ireland remains a key location for high-tech industry," Kathryn D'Arcy of ICT Ireland said.
The Irish Small and Medium Enterprises Association (Isme) said the announcement was symptomatic of the ongoing problems in the labour market, including the excessive cost environment.
"The announcement has far-reaching consequences for the whole economy in terms of international reputation, highlighting how uncompetitive we have become," said Isme chief executive Mark Fielding, who urged the Government to outline a national action plan to protect jobs.
Dr Vincent Cunnane, chief executive of Shannon Development, said his organisation would work with Dell, the IDA and other bodies in developing options for "these highly productive workers".
The American Chamber of Commerce in Ireland said similar announcements could be expected in the multinational sector in the next 12 to 18 months, but that these would be somewhat offset by new investments.