UP TO 700 temporary workers at Dell in Limerick were let go yesterday amid fears of further cuts at the city's biggest employer.
There was more bad news for workers in Limerick yesterday, when it emerged that at least 100 jobs are set to go at Flextronics, one of Dell's suppliers also based at the Raheen Industrial Estate.
Flextronics, which employs 290 people in the production of warehousing products, supplies a number of companies in the midwest, including Dell.
Siptu representative Karan O'Loughlin said yesterday that work was under way to keep the redundancies to a minimum, but it is feared that at least 100 jobs are to go, with an official announcement due next week.
"We are in discussions with the company on restructuring to try and manage the current contraction in the general business environment, but I have to stress, and I can't stress enough, that the core business there is very solid," said Ms O'Loughlin.
"The company is actively pursuing business . . . but in the current economic climate obviously there's a very keen eye on the bottom line and costs," she added.
A spokeswoman for Dell stressed yesterday that the "several hundred people" let go were all temporary workers employed on a quarterly basis. She said ending these contracts was done annually and that the move had no impact on the 3,000 permanent staff employed at the Limerick facility.
"These are fixed-term contracts that are given to people on a quarterly basis. They are extra staff that are taken on to support the 3,000 workers on a demand basis and it doesn't have any impact on the permanent positions," said the spokeswoman. She would not specify the exact number of temporary workers let go, but it is understood to be in the region of 700.
Speculation over the future of Dell's workforce in Limerick has been rife since it was first reported that the company had decided to sell factories worldwide, including the Limerick plant.
Fine Gael Limerick East TD Michael Noonan called on the Tánaiste to clarify the position in relation to the future of the computer giant in Limerick.
"Even if these jobs are temporary, they still are jobs that are being lost and the sheer volume is a cause of major concern," he said.
"So far, the Tánaiste has failed to make a clear statement in the Dáil, despite several requests for her to do so . . . Whether it's a case of Dell downsizing and looking for more tax breaks or of Dell closing up altogether, we need to know," he added.
Labour TD Jan O'Sullivan said yesterday was a very bad day for Limerick. "Today's news is a very worrying development, causing serious concern in the Limerick area and my thoughts first and foremost are with those families who now face financial stress and uncertainty," said Ms O'Sullivan.
"It is of particular concern that so many good quality jobs may now be lost."
Mayor of Limerick John Gilligan said it was a sad day for workers in Limerick. "The union officials will work to minimise the amount of people on the dole but hard decisions will have to be made," he said.