Dell workers may opt to refuse EU payouts

MANY of the 3,000 Dell workers are ready to turn down money from the EU because they have been told they will lose their social welfare entitlements.

Each of the redundant workers are entitled to spend up to €9,000 on retraining, further education or setting up their own business.

But very few signed up for courses and retraining at a two-day workshop in Limerick at the weekend because they were told they would lose their social welfare, Labour MEP Alan Kelly said.

“This is bordering on the ridiculous. If it is not sorted out immediately it will jeopardise the whole administration of the €22.8 million fund,” he said.

More than 2,000 people made redundant from Dell and related industries last year turned up to the workshops aimed at helping them use the fund in the best possible way.

“Social welfare officers at the workshop advised them that they would lose their unemployment assistance and other benefits if they took the money.

“Those that qualify for back to education allowance would not get it if they took the EU funds to go back into full-time education.

“As a result many exhibitors said that workers were reluctant about retraining and business start-ups. Very few took up the courses they wanted in colleges in Limerick, Tipperary and Cork,” he said.

Mr Kelly said he had been assured by Government sources that this would not happen and that those benefiting from the EU fund would continue to qualify for social welfare allowances.

Mr Kelly, who has been working with the ex-Dell employees for some time, said he and the workers had pointed out the seriousness of the social welfare issue to Government officials four months ago.

“These social welfare entitlements need to be red circled immediately or the Government will face into handing back some of this fund to the EU, and that would be insane”, he said.

The money must be spent by June 2011 or it will be lost.