DELL HELL; Global credit crunch 3,000 jobs threatened if PC giant moves to Poland US reports claim Limerick plant doomed Workers still in dark as crisis deepens.

Byline: BY PAT FLANAGAN 

FEARS were growing last night that computer giant Dell is about to close its Irish manufacturing plant with the loss of 3,000 jobs.

It was reported yesterday bosses have already decided to shut down their Limerick plant and move production to Poland.

Dell employs 3,000 people in the city and 1,300 sales support staff at Cherrywood, South Dublin.

But thousands more jobs could be in jeopardy as the trickle down effect of the pull out begins to be felt.

The world's second biggest PC manufacturer had warned of slowing demand for its products and its share price fell to a 10-year low.

Its founder and chief executive Michael Dell has vowed to cut up to EUR2.11billion in annual costs by shedding jobs and moving production to lowercost manufacturers . But in a statement this week, Dell admitted the slowdown in sales first reported in August was continuing but it refused to comment on any restructuring plans.

Mayor Cllr John Gilligan said Dell has a "moral obligation" to its employees to clarity its position.

He also urged the computer giant to approach the authorities in Ireland and discuss any problems it may be experiencing before making any decisions.

Cllr Gilligan added: "What would not be right is if Dell were going to do something which would effect the lives of tens of thousands of people in this region without first sitting down and discussing what their problems are and seeing if they can be resolved.

"I am saying to Dell, you have a moral obligation to your employees to tell them if you believe jobs are at risk.

"And if, as somebody has suggested the decision has already been made, I would find that intolerable. These are people's lives - people who have made the Dell brand what it is through their hard work over many years."

Limerick Chamber of Commerce chief Maria Kelly yesterday added she would be surprised if Dell was planning to move. But Ms Kelly did admit the growing speculation was "worrying" She added: "You can't dress it down - it would be a crisis for the region.

"You would have to look at calling some kind of crisis get-together of the highest level in Government to sort something out.

"This would wipe out a massive proportion of employment in this area and bring the economy down to staggeringly low proportions ..it would be a crisis. I would be urging someone in Dell here to talk to Dell Corporate and come out with some clarity.

"This kind of speculation does not help confidence in the region and it certainly is really unfair to employees.

"It must be a nightmare for them at the moment wondering if they are going to have a job in six months."

Meanwhile, the Tanaiste and Enterprise Minister Mary Coughlan yesterday revealed the IDA has been in touch with the company but no decision has been made about Limerick.

She said: "I think its important we don't speculate on these issues.

"The IDA have been in touch on numerous occasions with Dell. From a global perspective there has been a decision to re-evaluate the situation but no decision has been made at all."

But Justine Scheck, the Wall Street Journal reporter who broke the story, is in no doubt the plant is doomed.

She told RTE's News At One programme her sources in Dell indicated the decision on Limerick has already been taken.

The company has opened a factory at Lodz, Poland, last year and it's believed production will be moved there. Sources said the Texas-based group has offered to sell its factories to rival contract computer manufacturers in an attempt to reduce rising costs.

It has now emerged Dell decided last year to close the Limerick plant and this has been made more urgent by the sharp fall in the company's share price the last few weeks.

Executives believe its factories in Poland and Malaysia where labour

costs are low will be attractive to prospective buyers but the Limerick plant would be impossible to sell off.

Because of this, the Wall Street Journal claims Limerick was identified as one of the plants that would have to be closed but no date was given.

Analysts have estimated that upwards of 20,000 more jobs in the Mid-West region are linked to Dell through ancillary companies and contractors.

Last night Bank of Ireland issued a profits warning as the full force of the global financial crisis hit home.

The bank announced it planned to cut next year's shareholder dividends in half to build up its cash reserves.

BOI chief financial officer John O'Donovan said: "Trading conditions in the first six months of our financial year, and in more recent months have become increasingly difficult with slowing economies and the worsening global financial dislocation.

"Our priority remains to manage the bank conservatively through this period of unprecedented uncertainty."

EUR3BN WHAT DELL BOSS HAS VOWED TO CUT IN ANNUAL COSTS BY SHEDDING JOBS

Dell has a moral obligation to tell its staff if their jobs are at risk. These are real people who made the brand what it is. LIMERICK MAYOR JOHN GILLIGAN