MEPs approve €14.8m for Dell workers

Scofflaw

Parliament on Wednesday approved the payment of €14.8 million from the European Globalisation Adjustment Fund to Ireland's Mid-West region, where 2,840 workers lost their jobs when Dell closed its factory in Limerick.

When Dell moved its production of laptops, notebooks and netbooks from Limerick to China and other Asian countries, 2840 workers lost their jobs. Of these, 2000 were Dell employees and the others worked at Dell's suppliers or downstream producers. Ireland applied for EU aid in June 2009 and the Commission proposed financial support in September.

The package will help 2400 of the redundant workers by offering them job guidance, support to set up their own business, training and retraining, an internship programme, education allowances and grants. All in all, these actions are expected to cost €22,817,000 of which the EGF would provide €14,831,050, that is 65% of total costs. Parliament's endorsement is necessary for the money to be released.

After questions from the Employment Committee, the European Commission wrote Parliament a letter stating that there was no connection between the redundancies in Ireland and a new Dell plant in Poland, the Polish factory having been planned long before the closure in Limerick. In Tuesday evening's plenary debate with Commissioner Spidla, the Employment Committee raised the general question of the coherence of EU financial aid and the importance of ensuring that it does not distort competition within the EU.

Almost an FYI, really, although I seem to recall that scepticism was expressed that we would ever see this money after the vote.

cordially,
Scofflaw

Fratton Fred

I can't see how the closure of Limerick is unrelated to the new plant in Poland.

Of course Dell planned that before they moved out of Ireland, they are hardly likely to have a big gap in production are they?

Good news for the area though. this EU thingy may not be so bad after all:D

View

Fratton Fred wrote: »

I can't see how the closure of Limerick is unrelated to the new plant in Poland.

Presumably the Commission mean the plant in Poland was set up prior to any decision being made to close the one in Limerick - in other words they were seperate decisions. That is not to say that is nice if you were working in Limerick. As Ireland has benefited from some UK companies moving their HQs to Ireland from the UK, which presumably caused job loses in the UK, we can hardly complain too loudly about someone deciding to move from Ireland.

View

Scofflaw wrote: »

Almost an FYI, really, although I seem to recall that scepticism was expressed that we would ever see this money after the vote.

cordially,
Scofflaw

The No campaigners no doubt will regard this as being the start of the softening up process for the next EU referendum.

Fratton Fred

View wrote: »

Presumably the Commission mean the plant in Poland was set up prior to any decision being made to close the one in Limerick - in other words they were seperate decisions. That is not to say that is nice if you were working in Limerick.

I would be surprised if Dell hadn't planned to close Limerick three years ago and kept it quiet, not that it changes anything.

View wrote: »

As Ireland has benefited from some UK companies moving their HQs to Ireland from the UK, which presumably caused job loses in the UK, we can hardly complain too loudly about someone deciding to move from Ireland.

A Baby milk producer in Askeaton springs to mind...

Furious-Dave

Fratton Fred wrote: »

A Baby milk producer in Askeaton springs to mind...

I'm fairly sure that I have the wrong image of this place in my mind, but I think I prefer it to what the place is probably really like

View

Fratton Fred wrote: »

I would be surprised if Dell hadn't planned to close Limerick three years ago and kept it quiet, not that it changes anything.

Had Dell wanted out three years ago, they'd be gone long ago. They aren't the Civil Service.