Conference tallis::celt

1190.0. "Report on GAO closure." by ISEQ::MHOARY (Marto Hoary, GAO, 822 4169 ) Mon Mar 01 1993 10:22

From:	NUKUM::MACNAS::FERRIE "Liam Ferrie.....DTN 784-4930  01-Mar-1993 1057"
To:	@IRISH.DIS
CC:	FERRIE
Subj:	The Irish Emigrant - Issue No.317
    
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     March 1, 1993            THE IRISH EMIGRANT          Issue No.317
     _________________________________________________________________
     Editor: Liam Ferrie                            Circulation: 1,435
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     Our worst nightmares have come true and the Digital computer 
     company's hardware manufacturing plant in Galway is to close.  A 
     few weeks ago there was every reason to believe that the plant 
     had a bright future.  $10m had recently been invested in 
     upgrading the corporation's most complex and profitable hardware 
     facility.  Management and staff had met the challenges presented 
     by the current downturn in the computer industry head on, 
     trimming costs and increasing productivity in the most dramatic 
     fashion.  Behind the scenes events, the full details of which 
     will probably never emerge, resulted in Digital's new president, 
     Robert Palmer, deciding that Galway should be closed and a plant 
     in Ayr, Scotland, should remain open.  There is much speculation 
     that the British Government, by way of inducement or threat, 
     spoke to Mr Palmer about the level of business which the company 
     enjoys in Britain.  There is no evidence that anything took place 
     which infringed EC law, and it may be as simple as Mr Palmer 
     having no faith in Britain's commitment to the European ideal. 
     
     The final decision was made late on Wednesday evening and Digital 
     employees were the first to hear the news on Thursday morning.  
     Throughout the week media coverage was immense.  In normal 
     circumstances the Budget would have been the dominant story in 
     the press, television and radio.  This week it only rose to the 
     top for a few hours and then virtually disappeared again.  The 
     consequences of the Digital decision, for employment in Galway 
     and future industrial development in Ireland, was debated at 
     length.  It was frequently noted that Digital was far and away 
     the Industrial Development Authority's biggest success story and 
     the foundation of the electronics industry in Ireland.  There 
     were many attempts, much of them totally uninformed, to piece 
     together the sequence of events which led to this disaster. 
     Unfortunately, we also witnessed politicians sniping at one 
     another in public, instead of pulling together to retrieve the 
     situation.  My own cut on it is that Digital management in 
     Ireland worked day and night with the absolute conviction that 
     what was in the best interests of Ireland was also in the best 
     interests of the company, that the IDA excelled in its endeavours 
     to keep Digital here, and that the Government responded as 
     advised by the professionals of the IDA.
     
     The bottom line is that 780 people will lose their jobs as 
     Digital phases out its products over the next year.  There will 
     still be a Digital presence in Galway as the company decided to 
     retain its European software business here, with employment for 
     350 people.  Behind every one of those 780 jobs it is estimated 
     that another two people are kept in employment, directly or 
     indirectly, in support and service industries.
     
     Major job losses in Carlow and Derry added to the country's 
     problems on Friday.
     
     All our fears for the future pale into insignificance when 
     compared with the news received by the family of Valerie Place on 
     Monday.  Valerie, a nurse working for the Concern organisation, 
     who was shot dead in Somalia while trying to ease the plight of 
     the people of that country.
     
     Most of the week's other significant news stories concerned the 
     IRA.  In the space of a few days two RUC officers were killed and 
     two bomb explosions in England injured eighteen people and caused 
     considerable damage.
     
     
                             TRAUMA IN GALWAY
     
     To say that it was a traumatic week for Galway is to fail 
     miserably in describing, first the tension, and then the 
     disappointment and hurt experienced by Digital employees and the 
     people of Galway over the last seven days.  It was like sitting 
     by the bedside of a close relative who has been critically 
     injured and will probably die, but knowing that if he can survive 
     another few days he will make a full recovery.  When death comes 
     it is no surprise but, at the same time, you are left in a state 
     of total shock.
     
     On Monday, Minister for Employment and Enterprise Ruairi Quinn 
     and his delegation met Digital president Robert Palmer in 
     Massachusetts.  Afterwards, Mr Quinn said that he had put new 
     proposals on the table and was confident that the Digital 
     facility in Galway would remain open.  He refused, however, to be 
     drawn on the number of jobs which would be saved.  For the next 
     few days the company repeated its assertion that no decision had 
     been taken.  The media devoted an incredible amount of attention 
     to the story.  It was even the subject of a special debate in the 
     Dail at the behest of the Fine Gael party, probably something we 
     could have done without.
     
     We were never quite certain when we would learn of our fate, 
     which made each day increasingly difficult, although we were 
     assured that it would be revealed before the end of the week.  On 
     Thursday morning a general meeting was called and plant manager 
     Martin McCarthy told us that a decision had been taken to close 
     the hardware manufacturing business in Galway.  He explained 
     that, despite the plant's excellent record and its continuing 
     contribution to Digital, the corporation believed that the most 
     appropriate place for such a facility was Ayr, Scotland.  The 
     decision, he said, was taken for reasons of "strategic intent".  
     As I understand it, this means that Digital expects to gain 
     additional market share, or at least protect its existing market 
     in Britain, where its turnover is currently at $1bn.  While this, 
     no doubt, appears to be an eminently sensible assessment from a 
     distance of 3,000 miles, it is totally and utterly perplexing to 
     us here in the new open Europe of 1993.  
     
     You may have difficulty believing that as soon as Martin had 
     finished informing 780 people that they had lost their jobs, he 
     was applauded.  This was a spontaneous recognition of the 
     tremendous efforts which he and his staff had made to save the 
     plant.
     
     At the same time as this was taking place, Wilf Regan was telling 
     our 350 colleagues in the software business that their jobs were 
     to be retained.  I am sure they were relieved but their sadness 
     was evident as they commiserated with those who will be leaving.  
     Our colleagues in Ayr will take little consolation from the 
     plight which has befallen us and I wish my many friends there 
     every success for the future.
     
     I mentioned hurt at the beginning of this piece and no doubt it 
     is something we all feel, but I hope it dissipates with the 
     passage of time, as we look back on the positive aspects of our 
     relationship with Digital.  I am bitterly disappointed that it 
     should end like this but can reflect on nineteen years of 
     challenges, excitement, achievements, camaraderie, laughter, 
     trust, opportunities, personal growth and, of course, the 
     inevitable few set backs.  I can honestly say that there were 
     very few mornings over that period when I did not wish to go into 
     work.  I must also thank Digital for giving me the opportunity to 
     visit places which I never expected to see.  These included most 
     countries in Western Europe, the east and west coasts of the US 
     and (with a few minor detours!) Montreal, Dallas, Tijuana and 
     Austria.  Aside from all this I will be eternally grateful to 
     Digital for giving me the opportunity to live, and some would say 
     prosper, in Galway, and to rear a family in such a wonderful 
     environment.
     
     I have to admit that I can afford to be more philosophical than 
     many as, with nineteen years service, the severance package will 
     ease the financial strains for me.
     
     
                        A BLEAK FUTURE FOR GALWAY?
     
     That's not my forecast.  There is an air of doom and gloom about 
     the place.  It would be strange if that were not the case.  Local 
     traders must view the future with trepidation.  Suppliers of a 
     wide range of services and products see a huge part of their 
     business about to disappear.  Housebuilders have stopped work in 
     the belief that it will be impossible to sell new properties.  
     Anyone who has to sell a home, for whatever reason, must fear 
     that its value has fallen dramatically.  The number of people 
     impacted is enormous and the decision has implications far beyond 
     Galway.  Car hire firms at Shannon, Aer Lingus, Telecom Eireann 
     and a number of major trucking companies will all feel the pain.  
     Even in Boston, a colleague's brother-in-law fears for the future 
     of his job with Aer Lingus cargo handling.
     
     A local politician commiserated with me and, in the course of a 
     long conversation, he said that Digital changed Galway from being 
     a small country town to a city.  I believe this has a great deal 
     of truth and that Digital has left a lasting legacy here.  The 
     self-belief and "sky's-the-limit" attitude which epitomised 
     Digital has rubbed off on others and will not die easily.  Over 
     the last twenty-three years Galway has developed a unique 
     personality.  It has an air of confidence and ambition, plus an 
     exuberance, which would be hard to equal.  I am not alone in my 
     determination to remain here and I have no doubt that the 
     question being asked by many of my colleagues is "How can I 
     create a job for myself?" rather than "Where can I find a job?".  
     Digital has unleashed dozens of budding entrepreneurs on the city 
     and I am very hopeful for the future.
     
     There is no doubt that some talented people will leave the area 
     but there is a desire to keep intact, what is probably an 
     unparalleled combination of skills.  I have no idea how this can 
     be achieved but if the determination is there, who knows what 
     will happen.  The Government has promised to do everything it can 
     to bring in replacement jobs and to encourage Digital employees 
     to start their own businesses.
     
     
                            AND WHAT ABOUT YOU?
     
     You may be wondering what the future holds for this publication.  
     At this stage all I can say is that it has become an integral 
     part of my life and I have no plans to abandon you.  No doubt I 
     can find an alternative method of distribution.  It may be 
     necessary, at some stage in the future, to make it a commercial 
     venture but that remains to be seen.
     
     Business and Finance magazine was published on Thursday and 
     carried two articles on Digital, one on company president Robert 
     Palmer and the other about this newsletter.  The latter went 
     under the heading of "Bad News Means no News" and gave the story 
     of the Irish Emigrant.  It implied that it may be coming to an 
     end but, as I say, I hope that is not the case.
     
    

    
    We may lose a building but we'll NEVER lose our friends.
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    keVin