Taoiseach Brian Cowen has called the announcement by Dell that it is to cut 1,900 jobs at its Limerick plant a ‘major blow’ to the city and to the midwest region.
“There is no gainsaying that this decision represents a major loss to the region,” he said.
“I am particularly conscious of what this means to the workers whose jobs will go between April and January next and to their families. It also has a wider multiplier affect,” he said.
Mr Cowen said it was vital that all resources were mobilised to meet “this major challenge for the region.”
He said Tánaiste Mary Coughlan was setting up a task force consisting of representatives of central Government and the relevant Stage agencies at senior level to engage with the workers and all relevant local interests to give every support and assistance to those who are losing their jobs and to promote economic activity and development in the region.
“This will be in addition to the over 800 jobs which are scheduled to be created by companies like Vistakon, Zimmer, Cook,and Microsemi in new projects which have already been announced for the region,” he added.
Ms Coughlan today expressed her disappointment at Dell’s decision and reiterated that the state development agencies would provide every possible assistance to the workers that are due to be made redundant.
“My immediate thoughts and concerns are for the workers and their families and those directly impacted,” she said.
Ms Coughlan said she recognised the computer giant needed a fundamental change in its business model to enable it to continue to compete in the global market.
“A successful Dell is in our interests, as even with this level of redundancies, Dell remains a major employer in Ireland and a major contributor to the economy,” she said. "My Government and IDA Ireland will continue to engage with Dell, as we do with all companies located here, with a view to attracting other functions and investments from the company.”
The mayor of Limerick John Gilligan and Limerick city manager Tom Mackey also expressed their deep disappointment at the announcement.
Mr Gilligan said his first concern was with the workers who received "devastating news" this morning.
"I really sympathise with them today, Dell employees in Raheen were exemplary and a credit to their employer and to Limerick City," he said.
Mr Gilligan said the Government needed to make the banks accountable as "they are responsible for the economic mess the country is in, they need to be asked to give the Dell employees who are losing their jobs some flexibility as they struggle in the months ahead."
He also called on the Government to set up a task force immediately to see if any of the jobs could be saved.
Limerick city manager Tom Mackey said he was very disappointed at the news. “The company has been in the Midwest since 1990 and it has acquired a very dedicated, committed and professional workforce which is highly skilled in all areas of computer manufacturing," he said.
He said he was hopeful another manufacturer or employer in the high technology area would "seize the opportunity to avail of that highly skilled workforce and keep these jobs in Limerick".
Minister for Defence Willie O’Dea said he was extremely saddened at the announcement.
“The enormity of what has been announced this morning will take days and weeks to sink in, as it will directly hurt and affect thousands,” he said.
“The focus now must be to build on the region's strengths to attract investors and new employers and for those State projects already earmarked for the region to commence.”
Local Labour TD Jan O’Sullivan said the news was an economic catastrophe for Limerick and the midwest region and a personal tragedy for those who are now to lose their jobs.
“The fact that the job losses have been forecast for some time does not make it any easier: nor will redundancy payments be much comfort to workers who will find it extremely difficult to find alternative employment in the current economic climate,” she said.
Ms O’Sullivan said many Dell workers did not believe that all possible was done to save the jobs.
“The trip to Texas by Ministers O'Dea and Coughlan in particular appears to have been a question of "too little, too late”, she said.
“The priority now has to be on the creation of new jobs and re-training opportunities. There should be a key project group established to lead this drive."
Fine Gael TD for Limerick East Kieran O’Donnell said the Dell redundancies were a disaster for Limerick. He called for a multi-agency Government taskforce to be set up to ensure that the 1,900 workers could secure new jobs within 12 months.
“This is one of the blackest days for Limerick in recent history. The loss of 1,900 jobs at Dell and the closure of all manufacturing at the facility will have enormous consequences for the entire Midwest region,” he said.
“But this news also opens a window of opportunity. The Government must establish a taskforce involving all relevant State agencies and key business interests with the aim of finding alternative employment for all workers within 12 months of being made redundant, including the non-Dell jobs affected by the lay-offs."
Fine Gael TD for Limerick East Michael Noonan called on the Government to declare Limerick and unemployment emergency area.
“The decision had been well leaked prior to Christmas, but the impact of the announcement this morning has sent shock waves through Limerick and the surrounding counties," he said.
Dr Vincent Cunnane, chief executive of Shannon Development, described the announcement as a severe blow for the employees and their families.
He said his organisation would work with Dell, the IDA and other relevant agencies and bodies, to assist in developing alternative options for Dell and for these highly productive workers."
Sinn Féin enterprise, trade and employment spokesman Arthur Morgan criticised the Government for its "lack lustre approach to tackling the impending job losses in the company which have been muted for some time now”.
“The government has failed to take action over Dell. For months it has been clear that Dell was reviewing its position in Ireland and yet the Government failed to come up with an alternative that could have saved these 1,900 manufacturing jobs," he said.