Dell’s workers unemployment in Ireland could get help from the European Union.
On Thursday Dell announced that 1,900 people would lose their jobs at the company’s plant in Limerick.
The European globalisation fund was set up to help member states retrain workers who lose their jobs when companies relocate outside the EU or to help them if the jobs because of major structural change in world trade.
This could make the workers in Limerick eligible for re-training with EU money but one issue is that the people benefiting from the grant must put up 50 percent of the money for re-training themselves. The Government must put up the other 50 percent.
The main problem is that the work in Limerick is being re-located to Poland which is also in the EU. The grant is not made available with the intention of just shifting money between IT companies like Dell, who in this case will be benefiting from EU finds as part of their move to Poland.
So the Irish Government has to prove that there has been “a major structural change in world trade patterns within the computer industry”, according to the Irish Times. “EU sources predict this should be possible in the case of Dell.”
The commission has also recently proposed loosening the eligibility criteria to allow EU states to apply for funds in cases where companies close down or relocate due to the current economic downturn, which appears to apply to Dell in this instance.
What it means for the Dell workers is the possibility at least of help with training, occupation guidance, becoming self-employed and the like. According to the Irish Times to the Irish Times the council of Ministers will consider this proposal next week.