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Dell petition says plant production shifting to Mexico

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Comments (6)

Friday, October 16, 2009

(Updated 3:53 pm)

By
Associated Press

WINSTON-SALEM (AP) —Production at the plant that Dell Inc. is closing in Winston-Salem will be moved to Mexico and other countries, according to a federal document.

The High Point Enterprise reported today that Dell indicated in a Trade Adjustment Assistance Act petition that the work that has been done in Winston-Salem will be given to third-party providers in Mexico and other countries.

"(Dell's) work volume is being transferred to a global manufacturing network," the petition says. "The work will be given to third-party providers who operate in Mexico and other countries around the globe."

Dell said last week it will close the plant, cutting almost one thousand jobs in North Carolina. The plant will cut 600 jobs next month and the rest in January. The petition allows workers at the Winston-Salem plant to collect additional unemployment benefits.

The Winston-Salem Journal reported Thursday that the state's Rapid Response Team will meet with Dell officials today to discuss job-training and unemployment benefits for former employees.

North Carolina spent millions of dollars in tax breaks, cash grants and other promises to lure Dell to Winston-Salem. The company got the potentially rich deal by seeming to offer steady assembly work paying an average of $14 an hour for hundreds of dislocated furniture and tobacco workers in central North Carolina.

Accompanying Photos

Nelson Kepley

Photo Caption: The Dell plant in Winston-Salem.

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Norm*

October 16, 2009 - 7:25 am EDT

Okay, the jobs are a done deal, poof! gone to keep profits up. How about what's going to happen with the property? Brand new, easy access to transportation. Was it leased or operated by a Dell properties subsidiary? Maybe a supplier to Honda Jet could use the space?

luvdowntowngso

October 16, 2009 - 8:14 am EDT

Norm, that is a great idea. This new building should not go to waste!!!!

Laura

October 16, 2009 - 8:42 am EDT

In the long run, aren't we losing more than we are gaining by exerting so much energy into corporate recruitment? Now all those workers are collecting unemployment and medicaid. We should recognize that any corporation we lure here, will grab what it can for the short term and then leave.

Let's stop feeding this beast and think long term -- the focus of economic development should be on lots of small, home-grown businesses, with owners who live in our neighborhoods, go to church here, send their children to schools here and have a stake in the community.

Norm*

October 16, 2009 - 10:07 pm EDT

Certainly corporate recruitment is backward thinking at it's best. Discounting through kickbacks is not how to extol the quality of the region or its workforce. If they aren't here for the quality of the work force (think educational level and skills) then you are competing with labor as a commodity + the cost of shipping. Why aren't we focused on creating a workforce that can't be replaced by cheaper labor with that shipping additive? Having been a small business owner (12 years) AND having worked for a small business (8 years), I would rather have the cash flow and profit potential of larger businesses at the heart of a local economy. Small local businesses only can survive when there is already a substantial middle and upper middle income population.

countryboy

October 16, 2009 - 12:01 pm EDT

Well said Laura...I'm for the free market...but few things are free for the little guy. Give me the deal that Dell received and I will quit my job and start a small boat company...or repair shop...or coffee shop. But just like homeowners, the small businessman has to pay his property tax so deified corporations like Dell can come in...take the money...and run to Mexico. The mayor and council will find a way to spin it...just like the baseball stadium blackmail...but I truly believe hardworking taxpayers (there are fewer now since only 48% of us will be paying federal taxes next year...which I suppose leaves 52% on the dole) are getting exausted by the spin. One more reason we should all support local businesses. We can pay a little more for hardware at the register or more in taxes so we can recruit the big boxes to pay a little less at the register. I prefer to pay a little more to my neighbor.