Dell To Close It’s Winston-Salem Plant
Posted by JamesB in Business News, Political, Technology, Triad News, tags: Dell, winston-salemMore news to follow but yes folks it’s all over, that Boondoggle, multi-million dollar tax give away is closing it’s doors!
Here’s the follow-up. Dell will lay off 600 workers by next month with the remaining workers to be laid on January. The number Dell cites is 935 total however some dispute there are that many employees currently at the plant. Frank Miller, Vice President for Public Business Unit Supply Chain, was quoted as saying Dell will meet all agreements it had in place with North Carolina, Forsyth County and Winston-Salem which should be interesting to see since the bulk of the agreement was to employ some 1,700 workers which it never did. There was at least $37 million in incentives directly given to Dell to locate in North Carolina not to mention the millions of hidden cost in road construction, rezoning, and such.
“The opening of this facility means hundreds of hardworking North Carolinians now have good jobs that bring better benefits and better skills to the transitioning Piedmont Triad economy,” said Gov. Easley. “In addition, the Dell project will provide more than $700 million in net revenue over 20 years to our state. This project makes good economic sense for North Carolina and we are proud to have such a well-respected global company in our state.” October 2005
Oh well just one more giant tax giveaway to private business. Of course this will certainly result in changes to the FedEx Hub plans which have already been pushed back in terms of it’s staffing. The loss of another 900 jobs on top of the 300 from PACE Airlines really spells out the trend for North Carolina employment which at this point is already above 10.8% and one of the highest in the nation.
On a brighter note Winston-Salem has released some of the 50 pages of documents associated with the tax payer funded baseball park so Billy Prim will get his nearly $50 million dollar stadium which he said would not cost the tax payers a dime.
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I decided to go back to some old post of mine as I knew I had blogged about Dell’s future years ago and from August 2006 I found this from a larger post on how Dell’s stock price and business model was in trouble.
“What I will say is I stick to my comments that if Dell goes under $20 then things could get very bad, very quick. Even at $20 with the profits dropping like they are Dell is going to have to review it’s PC building business and if there is a real cost savings with building in the US. Considering Dell just opened a new plant right down the road from me I hate to see those jobs at risk but I feel it is very likely Dell will look at reducing it’s labor force. That being the case expect support and assembly jobs to be at the top of the cutting list.”