Talks on 500 layoffs at Dell supplier

THE Dell fallout has claimed its first major casualty among its supplier companies in Limerick.

Layoff talks involving almost 500 workers at Banta RR Donnelly, whose sole customer is Dell, have commenced, it was confirmed yesterday.

With the decision by Dell to close down its manufacturing lines, with the loss of 1,900 jobs, the fate of Banta RR Donnelly was inevitable as the company’s Raheen facility only provides services to Dell.

The company is located next to the Dell site at Raheen industrial estate.

SIPTU, which represents catering and security staff at the plant, confirmed yesterday that 23 of their 42 members will lose their jobs next August.

Security staff union members will be among the last to go next January.

The company refused to respond to media queries, but workers say they will be let go in tandem with the Dell layoffs which will commence in April when up to 400 people will be made redundant.

Banta RR Donnelly workers are understood to be in line for a slightly better redundancy package than their counterparts at Dell.

Workers who availed of a voluntary package before Christmas were paid six-and-a-half weeks per year of service.

This is being taken as the precedent for redundancy talks taking place.

It is believed that Banta RR Donnelly, like Dell, are holding one-to-one meetings with staff.

Banta RR Donnelly, which boxes Dell computers and accessories, has built a new plant adjacent to the new Dell plant in Lodz, Poland, which will take over the Limerick assembly line work.

Banta RR Donnelly is preparing to transfer its work to Lodz.

The going rate for Dell workers in Poland is approximately €3 an hour compared to an hourly rate of about €11 here.

Meanwhile, workers at Dell have appointed a committee to represent them in talks with management.

Several hundred attended a meeting last Thursday night, called by Denis Ryan, who has been with Dell for more than 10 years.

Hours prior to the meeting, Dell management announced a number of improvements to the redundancy package on offer.

A cap of 52 weeks was raised to 104 weeks and 20% bonus and shift allowances were also factored into the gross amount on which the six weeks for every year of service will be based.

The newly-appointed committee has members working on all shifts and they want collective bargaining rather than the one-to-one talks management are insisting on.