Deal could salvage 150 Gateway jobs

Gateway is expected to sign an outsourcing deal with a Dublin-based multinational firm, Clientlogic, next week that will save about 150 technical support jobs in the Republic.

The deal would soften the blow of Gateway Computer's closure, which represents the biggest single loss of jobs here since Seagate closed in Clonmel in 1997. Sources said yesterday a significant number of Gateway's customer support staff would be offered the opportunity to relocate to Clientlogic's facility in Swords.

Gateway still employs about 200 technical support staff at its Clonshaugh facility in north Dublin. They offer advice on how to use the firm's products.

But some of the jobs are likely to be on a temporary basis following Gateway's decision to exit the European, Middle Eastern and African regions. This means the company's requirement to offer customers support services in these regions will reduce significantly.

Almost 600 staff have already been made redundant at Gateway since it announced it would close its Dublin facility in September.

Gateway would make no official comment on the talks yesterday. A spokesman for Clientlogic confirmed it was talking to Gateway, but said no final agreement had been reached.

"We are hoping we can secure an arrangement that we can safeguard a significant number of jobs in the Dublin area," he added.

Sources said a statement of work between Gateway and Clientlogic was almost complete, although no decision had been taken on the exact number of employees to be offered transfer.

It is believed the final figure will be about 150 staff.

ClientLogic is a global service firm which focuses on managing each stage of a customer's experience including customer care, fulfilment and marketing services.

A subsidiary of Canadian group, Onex Corporation, ClientLogic operates in 55 facilities in 11 countries throughout North America, Europe and Australia.

It provides customer support services for a range of companies in the European region from a 40,000 sq feet facility based in Swords, north Dublin.

Following a deal with Gateway, Clientlogic would employ over 300 people at its Dublin operation.

Gateway is expected to completely shut its Clonshaugh operations before Christmas. Its facility has already been put up for sale with a price tag of £19 million.

The company, which established a manufacturing and support hub for the European, Middle Eastern and African regions in Dublin in 1993, has a liability of £19 million (€24 million) to the Government.

An IDA spokesman said yesterday that discussions were still ongoing on the amount which would have to be repaid for employment grants. It remains unclear if the transfer of staff to Clientlogic will reduce this liability. The impact of the transfer on redundancy payments for staff is not yet known.

A successful deal between Gateway and Clientlogic would in some ways mirror an outsourcing deal agreed by Motorola and Flextronics in December 2000. Under this agreement, 750 Motorola staff transferred to Celestica to manufacture mobile phone handsets.