Conference 7.286::digital

    	There are then two articles, because yesterday, while having a
    video-conference with GAO, they showed the first page of the Irish
    Times addressing the GAO potential closure.   Can someone re-print the
    two articles.   We heard from GAO that it is still newspaper
    speculation of a very cumbersome still pending resolution.
    
    

    This was a � page article in the Financial Times last week and most
    surprising of all, a feature of the BBC Radio 4 "Today" program
    yesterday morning.  This is the premiere news and current affairs
    serious radio broadcasting in the UK.
    
    The radio article basically indicated that it was dear old Digital in
    retrenchment mode that was playing off the Irish government against the 
    British for "employment maintenance".  From the comments of the Irish
    officials, they were expecting the decision to go in favour of Ayr 
    (Scotland).  This will be a hammerblow not just to Galway employees
    but to the whole town and region of Galway.  Current estimates are that
    for the loss of each manufacturing  job, there are about 2 others lost
    inthe immediate supply chain and supporting economy.  Digital is the
    biggest manufacturer in Galway.

    DUBLIN POISED TO DEMAND EC DIGITAL PROBE.

    With the threat of closure hanging over two major computer factories -
    in Ayr, Scotland and Galway, Ireland, the Irish government was last
    night considering a formal investigation by the European Commission
    into the threatened transfer of jobs by Digital to Scotland.  Irish
    ministers say an EC inquiry might determine whether the UK government
    unfairly induced Digital to switch production to Ayr by holding out the
    prospect of substantial defence contracts.  The Irish Government is to
    wait for Employment Minister Ruairi Quinn's return from Digital's
    Boston headquarters before making a final decision on whether to lodge
    a formal complaint with the EC.  Accusations of "dirty play" have
    already been levelled at the Scottish Development Agency's campaign to
    attract firms to Scotland from other parts of the Community.

    Guardian, London.  23rd February 1993.

    FEARS OVER 1,000 COMPUTER JOBS MOUNT.

    The future of Digital jobs at its Ayr and Galway plants remained in
    doubt last night as both are under review by the company as part of
    their analysis of operations.  Both factories are the largest employers
    in their respective areas and so of vital importance to their local
    economies.  At the moment the Ayr plant is a favourite to stay open,
    meaning the Galway plant would have to close and Dublin is claiming
    that such a decision in favour of Scotland would be part of a �400
    million Digital deal".  Digital is expected to make a final
    announcement on the closures next week.

    Scotsman, Edinburgh, Glasgow Herald, Glasgow, Newcastle Journal,
    Newcastle.  Western Mail, Wales.  20th February 1993.

    DIGITAL LIKELY TO SAVE IRISH COMPUTER PLANT

    The Irish government has apparently averted the total closure of a
    Digital plant in Galway, west Ireland, after a high-level Irish
    delegation met in Boston Massachusetts, yesterday with Digital
    executives.  The delegation apparently succeeded in its attempt to save
    the Galway plant.  A final decision on the future of the plant, which
    is in an "either-or" closure  battle with Digital's plant in Ayr,
    Scotland, is expected in the next two days.  If a reorganisation of
    manufacturing production between Ayr and Galway, instead of the
    original closure plan, goes ahead it is thought likely that Galway
    would retain its software, marketing and R&D activities which employ
    about 350 people.

    Financial Times, London.  23rd February 1993.

Re: .0

In Ireland this has been the top news story for over a week now. It has 
completely dominated all newspaper and TV news coverage regularly occupying 
50% of the main news slots on RTE (the national irish tv station) 

To say that it will devastate Galway is putting it mildly. If it has the 
knock on effect that is being claimed (overall impact on 3000 jobs) then it 
will add 1% to the unemployment rate in the country. 

It also has serious implications for industrial policy in Ireland. Digital 
has been the example used by the Industrial Development Authority to attract 
other multi-nationals to the country.

The first official communication recieved internally was last Friday, 3 days 
after the story broke in the press.

Gerry

    
    The media took up the issue of a possible closure of Digital Galway on
    Thursday, 18th February.  Before this there had only been minor reports
    on the review of manufacturing capacity.  The Irish Times of Saturday,
    20th February, indicated that the decision had been taken against
    Galway.  Until then workers and management in Galway had been confident 
    of holding onto the plant.  This confidence was also shared by the 
    Industrial Development Authorities and by Trade Union officials.  (Like
    most Digital facilities, Galway is non-unionised, but because of the
    importance of Digital to the local economy TUs had been monitoring the 
    situation.)
    
    The ministerial delegation that met Robert Palmer this week has been
    assured that the decision has not yet been taken, and that any new
    information presented would be taken into account.  A new incentives 
    package has been offered.  
    
    The EC commission is to investigate alleged breaches of EC competition
    laws in Britain's efforts to sway the decision towards Ayr.  Also,
    relevant sections of EC rules have been faxed to Senator Edward Kennedy 
    who is to take up the issue with Digital today.
    
    The Financial Times article that claims success for the Irish
    Government is premature.  The government wants to save all jobs.  The
    damage done to Galway by the loss of nearly 1000 jobs would be on
    pretty much the same scale as the loss of 1300 jobs, though we must, of
    course, be happy for any jobs that are saved.  
    
    Everybody here is pretty glum, but we hold out some hope until we hear
    something officially.
    
    
    Liam
    

    Contrast this with the plant closings in the US.
    
    Marc H.

    
    You ask for contrasts, but I think plant closings and layoffs are
    always difficult on the people involved.  There are some differences in
    this case, however.
    
    One significant contrast is the proportion of the hit taken by Ireland,
    compared to any other country.  Every country is downsizing, but only
    Ireland will be hit for 100%.
    
    Another contrast is in terms of the state of the economy in which this
    is happening.  In Galway unemployment has soared over the last few
    years to a high of almost 30%.  If Digital goes unemployment will reach
    between 40 and 50%, and almost unthinkable figure.
    
    
    Liam

The following was published in The Boston Globe, 23 February 1993:


               GROUP ASKS DIGITAL NOT TO CLOSE PLANT IN IRELAND

                          By Josh Hyatt, Globe Staff

         A delegation from Ireland met yesterday morning with the
         president and chief executive officer of Digital Equipment
         Corp., asking him not to close an 1,100-employee plant in the
         depressed region of Ballybrit, Galway.

         In response, the troubled $14-billion computermaker said only
         that it would make a decision soon on the 22-year-old
         facility, which manufactures midrange and high-end computer
         systems.  "We appreciated their input," said spokeswoman
         Nikki Richardson.  "It is the company's wish to make a
         decision soon."

         The scene -- with Mayor Flynn vowing to make his position
         known in a letter to Palmer, and various claims and counter-
         claims flying -- was oddly reminiscent of the Maynard-based
         computermaker's controversial decision to shutter a 190-
         employee cable-making plant in Roxbury in mid-December.  The
         facility is scheduled to be closed in April.

         Yesterday's meeting included the lord mayor of Galway and the
         Irish minister for enterprise and employment.  On Sunday
         night, the group met with Mayor Flynn and with Donald Gillis,
         executive director of the city's Economic Development and
         Industrial Corp.  One of the Mayor's advisors said that Flynn
         planned to follow-up by writing a letter to Palmer, expres-
         sing his concerns about the message such a closing would send
         regarding investment in Ireland.  Gillis did not return
         telephone calls yesterday.

         Richardson said that Digital had been reviewing its plants
         around the world, and that "we believe we will be closing one
         plant in Europe."

         Bill O'Donnell, program director for Boston Ireland Ventures,
         a non-profit group cofounded by Mayor Flynn in 1987, said
         that Digital had decided that its Galway plant was much more
         cost-efficient than its facility in Ayr, Scotland, where it
         makes low-end systems.  "The Galway plant won hands down," he said.

         But about a week ago, O'Donnell said, Palmer met in London
         with British trade minister Michael Haseltine.  Haseltine,
         O'Donnell said, raised the possibility of a government order
         worth upwards of $400 million.  "Thereafter," O'Donnell said,
         "Digital decided to close Galway."

         O'Donnell said his information came from a letter written by
         Tom O'Connor, chairman of his sister group in Galway.  The
         British government has denied the story.  "It doesn't look
         good for Galway," O'Donnell said.  "We are very concerned
         about the handwriting on the wall."

         Indeed, sources in Ireland who are close to the situation
         said that Digital would announce on Thursday that the Galway
         plant will be downsized to a 400-person entity focused on
         software development.  "It's a real kick in the teeth," said
         the source, who added that the factory "provided a real
         industrial base for Galway."

         Digital said its eight-year-old plant in South Queensferry,
         Scotland, would not be affected.  The semiconductor plant is
         being used to produce Digital's new Alpha AXP microprocessor.

         Separately, Digital's Storage Business Unit yesterday
         announced several new products.  In a meeting at the Copley
         Marriot hotel, Charles F. Christ, vice-president of the
         business unit, said that it was negotiating for a high-volume
         contract with a maker of personal computers and workstations. 
         He also said the fast-growing unit planned to build a new
         plant in the Far East.

         Characterizing the unit as profitable, he said that he
         anticipated sales of at least $500 million in calendar 1993,
         rising to $1 billion in 1994.

    RE:  .5  
    
    >  41000::LBOYLE "Act first think later then apologise"
    
    
    Looks like Digital took your advice.

    so, which one builds Alpha systems?  Galway, Ayr, or both?

> The EC commission is to investigate alleged breaches of EC competition
> laws in Britain's efforts to sway the decision towards Ayr.  Also,
> relevant sections of EC rules have been faxed to Senator Edward Kennedy 
> who is to take up the issue with Digital today.

  I thought Kennedy was (unfortunately) a U.S. Senator?

>     <<< Note 2383.10 by XLIB::SCHAFER "Mark Schafer, ISV Tech. Support" >>>
>                            -< what's Priority 1? >-
>
>    so, which one builds Alpha systems?  Galway, Ayr, or both?

South Queensferry (SQF) manufactures the chips.

>    so, which one builds Alpha systems?  Galway, Ayr, or both?

Both, 

Ayr do PC's workstations and servers (5000's I think) and Galway do the higher 
end machines.

Bob 

Extract from LIVEWRIE WORLDWIDE NEWS 2/25/93

+-+-+-+-+-+-+-+TM                                                   ----------- 
|d|i|g|i|t|a|l|                   Worldwide News                      LIVE WIRE
+-+-+-+-+-+-+-+                                                     ----------- 

Digital announces its intention to close 
hardware manufacturing facility in Galway, Ireland 

Employees at the Galway, Ireland facility were informed this morning 
that hardware manufacturing operations there will be phased out during 
the next 12 months.  Galway, one of the company's systems manufacturing 
plants, produces mid-range and high-end VAX computer systems. 

Digital will retain its Galway-based software development and distribution 
operations and maintain complete sales and service operations in Ireland.  
The company also will work with local authorities, the Irish government and 
the European Commission to find other parties who can put the 450,000-
square-foot plant to other uses which will generate employment in the 
region.  

The hardware operations closing affects 750 employees.  Software operations 
employ about 350 people, and sales and service activities employ more than 
350.  

Details of the plant closing were outlined in meetings with employees at 
the Galway site.  Employees affected will be offered benefits including 
a financial support package based on length of service.

Ed McDonough, vice president, Manufacturing and Logistics, explained the 
decision in the context of the company's worldwide manufacturing strategy. 
"For more than three years, Digital has been restructuring its manufacturing
function, including its extensive European-based operations, to adjust to 
the changes that are affecting the entire industry," Ed said.  "Technology 
has advanced by orders of magnitude, increasing the efficiency with which 
products can be manufactured.  The movement of computing power to 
semiconductors, the shift in customer demand to high-volume, low-margin 
commodity products, and the decreased demand caused by a soft worldwide 
economy have all been major contributors to an excess of manufacturing 
throughout the industry.

"Manufacturing will remain a core compentency for Digital," he continued. 
"Our goal is to position manufacturing capacity to best serve our markets 
and to optimize the utilization of our assets.  It is on the basis of 
strategic intent -- and not an issue of quality of work -- that the decision
was made to close the Galway plant.  Since its opening in 1971, the Galway 
plant and its employees have made a significant contribution to Digital's 
success.  This was a very difficult decision to make."

    I suppose it could be worse.
    
    It's another "piece of the old times going" as far as I'm concerned: I
    was involved in helping set up the plant in 1971/2 (I worked in PDP10
    Software Support then, and went to help them get their PDP10 production
    control system working).
    
    And rumours of the Mill closing too . . . (my first desk was in 12-3).
    
    Sigh . . .
    
    Dave.

    	Re:Contrast w/ other plant closings
    
    	It would seem to compare with the Puerto Rico plant closings.

I sent this in to Nikki Richardson. This was pretty much a gut reaction, since
I am not involved in any of this, nor do I have any idea what considerations
Digital is taking into account, but I do have a few friends over there. 

    Nikki:

    I was quite surprised and saddened to see the message from Terry Brennan
    of the Galway Chamber of Commerce regarding the possible closing of GAO.
    I have worked with several people from there over the past year, and in
    fact visited GAO twice to conduct training. My reaction is purely
    subjective, based on my limited perception of GAO, the job they have
    done, and the state of the Irish economy. I have no objective data to
    back it up. I realize that this decision is just as painful as any
    other plant closing decision, and I am sure that Digital is evaluating
    its options with the greatest care and deliberation. I myself have no
    personal or nationalistic agenda here. I only wish to see the most
    mutually beneficial outcome for Digital and its host communities.

    I was under the impression that GAO has an excellent, if not superior,
    production record. If this is indeed true, it might be worthwhile for
    Digital to bear whatever other pain keeping GAO open might cause. A
    top-notch production facility is not to be abandoned lightly. Tuning the
    people, processes, and equipment is a delicate and time-consuming task,
    that once done should not be disturbed. The long-term costs of doing so
    may far exceed any short-term gains.

    The impression left by my trips to Ireland is of a sparse, pastoral
    land. Economic scales are far reduced from what we are used to. The
    tiniest event has tremendous ripples. Reports of layoffs ("redundancies"
    as they are euphemistically termed) of as few as 20 people make the
    national news, and spark reactions comparable to what we might see here
    when a large employer such as GM lays off 1,000 people in a single
    community. When Mr. Brennan states that the loss of 1,100 jobs would be
    devastating to the Galway region, I have no doubt that this is an
    accurate assessment. Would it be totally unrecoverable? Certainly not,
    but it would be extremely slow and painful. Are the benefits to Digital
    worth doing that to a Digital community?
    
    Finally, what of the fine people who have hooked their lives and careers
    to Digital? They have few similar opportunities in their native land. 
    Certainly some could find other work which would provide similar
    livelihood, but for some people the paycheck is not the prime incentive.
    While it is a necessity, it pales behind the opportunity to do the type
    of work they are doing, for a company such as Digital. 

    To some extent I am arguing for maintaining the status quo simply for
    its own sake. I generally find this an unsupportable position, but the
    effects on people in this situation are very real and direct. Rather
    than taking away from one community to give to another, leave them both
    as is. While this may not be a truly win-win outcome, there are no
    outright losers. Unless there is some very clear and subtantial
    long-term benefit to Digital to make this change that is ethically,
    economically, and legally defensible, I feel that it should not be done.

    Regards,
    Steve Branam
    Senior Software Engineer, VAXcluster Systems and Support Engineering

    It's  also  interesting  to  note  that BTO (Burlington Vermont)
    "lost" the VAX 9000 manufacturing eventually to Galway; alot  of
    speculation  about  the reasoning had nothing to do with quality
    (not an issue for either plant) but that there were  better  tax
    advantages.  If  that  had  a  factor  in the decision sin't the
    point, only an aside. Eventually, BTO got the  "big  red  light"
    failing  to  come up with enough other business to justify their
    existence, and hundreds of fine people hit the streets.

    It's strikes me as ironic that we're now going to  close  Galway
    after  having  basically forcing the death-knell of a plant here
    because of moving the work to Galway. Is this pain-sharing?

    I  support  the efforts of the company to down-size. I just hope
    we're leaving enough resources around (human and  otherwise)  to
    support  Digital in making a rebound when the time comes without
    having to (re)hire and (re)build and (re)lease.

    Andrew Tobias (a noted humorous economist in  the  US,  although
    this wasn't meant to be (and isn't) humorous) recently described
    what all corporations are going through... taking  the  work  of
    three  workers,  making  two workers do it with the same pay and
    benefits (making them each work  faster  and  "smarter")  during
    economic  downturns,  then  making  more profit (because of less
    expenses), having a turn around in  the  stock  price  with  the
    reduced  employee  count,  then  as  the economy grows, maybe or
    maybe not having to rehire the laid  off  (fired)  third  person
    back  again.  It's a heck of a cycle. Too bad we don't have more
    reskilling of underutilized employees - our  PC/PCI/SI  business
    could sure use some bolstering...quickly...


    Just another loose jaw flapping.

    Re: .17
    
    A most sensitive and impassioned reply....(and letter).
    The harsh reality of the present situation with Digital is saddening,
    to say the least.
    In the game of "bottom-line" there often is no declared winner.
    As you pointed out in .17 , "..any short-term gains" and I would
    hasten to add - and at any cost.
    

    
    
    What I find strange is the closing of GAO, a 20 + year good track
    record is being communicated at the same time that Charlie Christ is
    saying that he will open a "new mfg plan in the FAR EAST".
    
    Why layoff 700+ productive workers, who have a good record and try to
    start off new ( heavy costs ) in a new country ?
    
    There must be economical/financial suport for this decision, but it
    doesn't appear obvious to me.
    

re: .20

	I have have been fortunate to work a number of projects in GAO
	starting in 1979.  A few of them lasted 6wks straight working 
	7 day's per week 10hr-12hr day's.  All the personal in GAO that
	I worked with were true professionals and great people.  They 
	always made me feel "at home" while I was away from my family 
	and friends back here in the States.

	I truly feel at a loss for words to say to those who have been
	a part of my Digital expierence.  I wish them all success in
	finding new careers and opportunities quickly.

	Best to you all.

	Dick Landry	Engineering Consultant
			Logistics Center of Expertise
			BXC Boxborough, MA

  This is indeed a sad day for Digital. We are not only putting a high per-
centage of Galway's industrial workforce out of work, but have also exacer-
bated tensions between Ireland and Britain/Scotland.
  This doesn't feel like "just another plant closing". As has been said in
several replies, Ireland, and especially the Galway area, has been deeply
depressed economically for centuries. I don't know what kind of unemployment
benefits are available for laid-off workers in Ireland, but I suspect they 
are less generous than in the U.S. and most of Europe. There is a real pro-
spect that many of these dedicated employees will remain out of work after
their package runs out and will face dire financial consequences.
  At one time in my previous job, I supported four remote facilities, in
Phoenix, Hong Kong, Puerto Rico, and Galway. I dreamed of having an oppor-
tunity to go to Galway on business. It never happened. Two of my coworkers
did have an opportunity to go there, and were impressed with the warm hospit-
ality they received.
  Five years ago, I would not have believed that a free-fall of this magnitude
in the computer industry was possible. 

>  Five years ago, I would not have believed that a free-fall of this magnitude
>in the computer industry was possible. 

	Unfortunately, neither did upper management.

					Tom_K

    so where will the alpha systems be built ? Will we "bring them back
    home" ??? How about ...up to Burlington Vermont ?...Westminster...or
    for that mater MR01...upstairs !!! ah the good old days when 10's and
     20's would thunder down the floor to FA+T...!!!! ( fyi: its pretty
     quiet up there these days since the 9000 went away.. )
    

    Some were built in Puerto Rico (Lasers) but when they closed   the work
    was transfered to Albuquerque. Some of the smaller ALPHA boxes are
    being built in Albuquerque too.
    

    re .17: Exactly my feelings too.
    
    Though I never visited Galway, I did visit the Clonmel plant a couple
    of times (as well as out Dublin office). It was shut down quite some
    time ago, but it was also much smaller (though certainly not
    insignificant to Clonmel, which is a smaller city than Galway). When
    Clonmel was shut down, I think most of the employees were offered jobs
    in Galway. I wonder how they feel now...
    
    It would be interesting to know how much direct and indirect subsidies
    we got from the Irish government in these 20+ years...
    

	The choice for which plant to be closed, and which was to continue to
	produce Alpha products was between Galway and Ayr, so the answer to 
	"where will they be built?" is Ayr.

	The choice would have been just as devastating for either area, as they
	both rely heavily on Digital in the local economy.
 
	Heather

From:	NUKUM::MACNAS::FERRIE "Liam Ferrie.....DTN 784-4930  01-Mar-1993 1057"
To:	@IRISH.DIS
Subj:	The Irish Emigrant - Issue No.317

     =================================================================
     
     March 1, 1993            THE IRISH EMIGRANT          Issue No.317
     _________________________________________________________________
     Editor: Liam Ferrie                            Circulation: 1,435
     =================================================================
     
     
     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?
                                (the readers)
     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.

    	
    
    I have created a notesfile for Galway employees to discuss options for
    the future.
    
    To add it to your notebook type ADD ENTRY TRIBES::GALWAY_FUTURES at the
    notes prompt.
    
    Liam

    	I've worked with Galway for the last couple of years and did have
    the opportunity to go there.  They are some of the friendliest, most
    hard-working people I've had the pleasure of working with.  It was not
    uncommon to get calls from people in GAO at 3:00 or 4:00 our time. 
    That's 9:00 and 10:00 their time and I mean first shift salaried
    people.  GAO worked their butts off to make the plant one of the best
    manufacturing plants in Digital.  In the long run I thnk that DEC may
    end up regretting this closing.
    
    George

    In my various jobs with DEC I never had much to do directly with
    the folks in Galway, but on the rare occasions it did happen,
    (support resource sharing, a DMB32 CLD....)
    I was genuinly impressed by their professionalism, do the right
    thing attitude and the obvious pride they had in their plant
    and jobs.
    
    Good luck fellas,
    /fred

>     <<< Note 2383.31 by MSBCS::PAGLIARULO_G "Reality is a cosmic hunch" >>>

>    people.  GAO worked their butts off to make the plant one of the best
>    manufacturing plants in Digital.  In the long run I thnk that DEC may
>    end up regretting this closing.
    
  I agree. The message I get from this is that if you don't work hard, you are
out of a job, and if you do work hard, you may still be out of a job. This sort
of thing discourages people from "working their butts off" for the company.
  The Irish Industrial Development Authority now faces a dilemma. Their only
hope for putting most of the laid-off people back to work in comparable jobs
is to have another high-tech company set up a mfg operation in Galway. But
Ireland has almost no "home grown" high tech, so this probably means bringing
in another foreign company. And that, in turn, increases the risk that the same
thing (high-tech mfg plant closing) will happen again 5 or 10 years down the
road.
  I think the best solution for Galway is, in addition to bringing in another
high-tech company, to find a "home-grown" industry. I have heard that the
crystal industry has done wonders for Waterford; perhaps someone can find a
similarly suitable industry for Galway.

Will the restructuring change for shutting down Galway end all hopes of breaking
even in Q3?


							-Paul

	Galway isn't going to shutdown overnight.. I suspect it'll
	wind down thru the next fiscal year..

						mike

re.34:

>Will the restructuring change for shutting down Galway end all hopes of
>breaking even in Q3?

No, because less than 50% of the last restructuring charge has been spent.

Dave.

	Digital has been planning to shut down a lot of it's manufacturing,
	I would presume the amount it set aside for restructuring included this.
	The decision was between Ayr and Galway, as the Ayr plant was bigger and
	with more people, I would assume, if anything, it would cost less to 
	shut Galway than Ayr.

	Heather

Subject: AST Looking At DEC's Ireland Manufacturing Facility 05/14/93
Date: 14 May 93 19:52:14 GMT
 
DUBLIN, CALIFORNIA, U.S.A., 1993 MAY 14 (NB) -- Reports from
Ireland indicate AST may be looking to purchase the former
Digital Equipment Corporation (DEC) Clonmel manufacturing plant
in County Tipperary, Ireland.
 
DEC closed the Clonmel plant in 1991 and in February of this
year announced 780 people would be laid off in the shutdown of
manufacturing in Galway, Ireland.
 
Sources at AST were unable to confirm the Clonmel purchase
reports, but said the company is looking for manufacturing
sites in Europe. Newsbytes notes Ireland is attractive to
international companies because the Irish government offers tax
breaks as high as 100 percent to companies which choose to locate
manufacturing facilities there.
 
AST is a strong player in the personal computer (PC) market and
has managed to grow while other companies are floundering in
the current PC price wars. The company reported its 1993 third
quarter shipments were up 70 percent over last year and revenue
reached nearly $1 billion in 1992.
 
(Linda Rohrbough/19930514/Press Contact: Gerry Baker, AST, tel
714-727-7959, fax 714-727-9355)