EU money for Dell workers depends on government plan

THE European Union had indicated it would back an Irish request for a financial package to help soon-to-be redundant Dell workers, but stressed the need for the Government to draw up a comprehensive programme for getting those affected back to work.

EU Commissioner for Social Affairs and Employment, Vladmir Spidla told Irish MEPs during a meeting he was acutely aware of the situation at Limerick where 1,900 Dell workers are due to be laid off in two months time, putting several thousand more jobs in jeopardy.

Government officials have been in touch with his office about making an application for funds to retrain workers, find them new jobs, or help them set up their own businesses.

There is no maximum sum per worker, although payments to date have ranged from €1,500 to €11,500 per worker, averaging €5,000. Payments are made under the EU’s globalisation fund.

Mr Spidla told Fianna Fáil MEP Brian Crowley and Fine Gael MEP Colm Burke that the state could also tap into other EU funds, including the social fund, designed to help in such situations, and the Regional Development Fund.

He told the MEPs that the commission was ready to use all means possible to help those affected by the redundancies at Dell, and the 6,000 to 8,000 others who depend on the plant.

But the first step will be to get a co-ordinated plan into the commission, setting out how many workers need help, as well as a programme to ensure their return to the labour market as quickly as possible.

Mr Crowley said after the meeting: “Commissioner Spidla strongly indicated in no uncertain terms that the European Commission will back a financial aid package for the Limerick region following the Dell decision.”

Mr Burke said he was very pleased that workers in the downstream jobs would also qualify, as in some cases these were low-skilled jobs and the people would need retraining, otherwise they would be the net losers in the longer term.

He also pointed out that the state would need to match the money on a 50-50 basis.

Over the past two years, the EU fund of €500 million a year has already helped over 15,000 workers in 12 cases in eight member states to a total of €67m.

The Irish workers may find it more difficult and need more help because of the recession.

“But the idea is to ensure workers do not lose confidence — use the year to be sure they are trained to take whatever jobs are available and be ready for when the economy recovers,” said commission spokesperson Chantal Hughes.

As well as paying for counselling and advice for workers, the money can be used to help people travel for interviews or move to another area.

The Government can use money from its allocation of €375m from the EU Structural Funds programme granted for the seven years from 2007.