Conference tallis::celt

         
    As a Galway employee directly affected by the uncertainty generated by
    this recent spate of media speculation it is interesting to note that
    not until now  does this rate a mention in the Celtic Notefile, or in  
    Euroforum which is probably a relection on the reduction of notefiling 
    activity in Galway since the last package last year.
     
    Saturdays paper, "The Irish Independent", speculates that a downsizing may
    occur in both plants rather that the previously held belief in the
    papers of a showdown between each to remain open. Our Minister for
    Enterprise and Employment is to meet Bob Palmer today to discuss the 
    situation.
    
    As a background, Galway has 25% of it manufacturing employment in its
    Digital plant, already has disastrously high unemployment (30%) and
    also has 2,000 spin-off jobs depending on the 1,100 or so directly
    employed in the plant. A sudden shutdown could possibly lead to civil
    disturbance in the area without too much stretch of the imagination.
    As a poor part of the poorest country in the E.C, there is simply no
    alternative employment in the West of Ireland.
    
    Ireland already has areas with unemployment in excess of 50%. There the
    high levels of mental illness, crime, drug-taking, and other social
    evils is legendary and the same could happen to Galway if Digital
    decides to leave. One could say that the siting of such a large plant
    in a town the size of Galway was a bad mistake in the first place and
    it looks like there is a valuable planning lesson to be learned from
    this development, the fallacy of relying too much on a single industry
    or source of income. One could also examine the regrettable fact that
    in an area where jobs are scarce any offer is welcomed and not
    questioned as to the effects of its withdrawal on the overall economy.
    

I just re-read the base note and think I should add that I believe the 
allegations of offers of large contracts are pure fiction.

IBM have a plant about 50 miles from the Ayr facility which employs a huge 
number of people (about 8000) and would probably go apesh*t if the allegation 
were true

Rgds........Gerry

    >There has been a call by a Galway politican for people with relatives
    >in the Mass area to ring them to encourage them to put pressure on
    >Mayor Flynn (hope he does a better job of this than he did of the
    >Boston plant!).
    
    I don't understand what possible influence the Mayor of Boston could
    have on this situation.
    

    Well, Mayor Flynn is directly involved in the Boston-Galway-Derry
    trade partnership.  So he probably could be of help.  I realize however
    that he wasn't successful with the Roxbury plant.  But Roxbury was
    much smaller and less economical to keep going ~ I believe it had
    around 200 employees?
    
    In my opinion Senate President William Bulger would be the best voice
    in trying to influence Digital to remain in Galway.  If the Irish
    minister and Galway mayor aren't scheduled to meet with him, then
    they should ASAP.  Bulger is very receptive to Irish concerns and
    very influencial throughout the state.
    
    Another possible contact would be Rep. Joseph Kennedy III.
    I'll get their addresses, phones, and faxes in a later message.
    
    /George                               

    re: .4
    
    
    Congressman Joseph P. Kennedy III
    
    Phone: (617) 242-0200
      FAX: (617) 367-8479
    
    
    
    

    
    Given this new investigation, I don't think Flynn would be the best contact
    in dealings with Digital...  I'd stick with Bulger...
    
    Boston - Mayor Flynn cites Mich. ruling, urges bid to keep Digital
	{The Boston Globe, 12-Feb-93, p. 69}
   Seizing on a Michigan judge's decision Tuesday to prevent General Motors
 form closing a plant in a community from which it accepted lucrative tax
 breaks, Mayor Flynn yesterday asked Attorney General Scott Harshbarger to
 investigate bringing a similar action against Digital, which announced in
 December that it would be closing its Roxbury facility, and laying off 190
 workers, many of them from Boston neighborhoods.  In a letter to Harshbarger,
 Flynn argued that Digital accepted the same type of tax breaks as GM did in
 Michigan and that the company's acceptance amounted to an implied contract to
 keep the plant open as long as financially feasible.  "Digital has never
 suggested it was closing the Roxbury facility because it was not profitable or
 its cable production was no longer needed," Flynn wrote.  "In fact, Digital
 has stated that in the future it would be purchasing its cables from
 non-Digital facilities in order to achieve greater savings."  The Michigan
 decision, which would not serve as legal precedent in Mass., declared: "There
 would be a gross inequity and patent unfairness if General Motors ... is
 allowed to simply decide that it will desert 4,500 workers and their families
 because it thinks it can make these same cars a little cheaper elsewhere."
 The judge said the Ypsilanti Mich., community relied on GM's promises to
 provide jobs in exchange for tax breaks; although there was no explicit
 contract, the judge invoked a seldom-used doctrine known as "promisory
 estoppel" to enjoin GM from moving the plant.  GM is appealing that ruling.
 Digital spokeswoman Nikki Richardson said she was unfamiliar with the details
 of the Mich. decision, but surprised that Flynn would target Digital for
 possible legal action.  "My first reaction is puzzlement, because we've been
 working with them to find an alternative, community-based use for that plant,"
 Richardson said.  Thomas Samoluk, spokesman for Harshbarger, said the attorney
 general's staff would review Flynn's request "as we do all correspondence."
 According to the mayor, Digital had received $7 million in subsidies from
 Boston, including tax-exempt bond financing, reduced property taxes, land
 write-downs, and recent subsidies.  Donald Gillis, director of the mayor's
 Economic Development Industrial Corp., said, "In Digital's lease, they agreed
 to follow the Crosstown Development plan, which envisioned 300 people working
 at their plant.  Tax relief was granted with the explicit purpose of them
 coming in and employing people.  Now Boston is left holding the bag."  Gillis
 said the Michigan decision "demonstrates that there is a national problem of
 corporations profiting at the expense of workers and neighborhoods.  Digital
 rung up profits in the 1980s with tax incentives, and now the community is
 being left high and dry."  The Digital plant, located at the corner of
 Massachusetts Avenue and Melnea Cass Boulevard, initially assembled computer
 monitors; then was refitted to may keyboards; and finally ended up producing
 cables.  "The mayor has argued that Digital can retool the plant once again as
 their business evolves into new technologies," Gillis said.  "They don't have
 to keep making cables."

 Boston - Mayor Ray Flynn touts Roxbury site for arena
	{The Boston Globe, 14-Feb-93, p. 1}
   Mayor Flynn yesterday touted as "almost a perfect location" for a new Boston
 Garden sports facility a 17-acre site along Melnea Cass Boulevard in Roxbury
 if plans for a new facility at North Station fall through.  In an interview
 after touring the Roxbury site, now occupied by Digital and Stride Rite,
 facilities that are soon to close, Flynn said, "It really is to me the best."
 "If they were to build a new Boston Garden on another location than the
 existing location, this is the location I'd have preferred.  It's almost a
 perfect location," Flynn said.

    I don't understand.  Why would any US governmental person, Flynn,
    Kennedy, Bulger, ..., have any desire to keep the Galway plant open?
     
    It seems to me that their priorities would be to keep Digital employing
    people in the areas where their constituency resides and votes.  If you
    want Digital at Galway to stay open, I think your best bet is to get
    Irish and Galwegian officials to influence Digital.
    
    And goodluck!  Someday I'd like to work in Western Ireland!
    
    -- Jim

    
    As an ex-GAO person I totally agree with last entry.  Myor Flynn,
    Kennedys et al, have their hands full with all the problems here in
    Mass.  As per George's notes, they couldn't keep the Dorchester Plant
    in South Boston opened; MFG with 200 people.  Therefore I doubt that
    they can help GAO.
    
    I hope the rumor is not true and it does appear to be stronger in
    Ireland, but many still feel that the "final" decision was already
    made.
    
    A question that maybe some GAO person can answer; the debate of GAO vs
    AYO has been going on for 6-9 months, was it true that GAO believed
    that it would stay alive ?, if so why did the people come to that
    conclusion ? ..... just wondering.

    
    Well it's 6 o'clock evening here in the Galway plant and I would say
    that 90% of the workforce here think the battle has been losted to our
    counterparts in Scotland.To answer 1188.8 I was talking to a senior
    plant staff manager a couple of weeks ago and I asked him what are our
    chances in this battle 50/50 I said "No way Pat more like 80-20  in our
    favor".Well I saw and was talking to the same manager today and he
    looked and sounded far from confident.It's a shame had to come down to
    a battle between Galway and Ayr but seems life can be very cruel and
    sadly  a lot people are going to get hurt no matter what way the
    decision goes.
                    Pat           
    

    
    Thanks for the update and if its true its really a sad day.  Are we
    talking about just the MFG only, or does that include ESSB and Eng also
    
    From the data mentioned in an earlier note it looked like chances of
    other jobs were slim, sounds a bit like the days when SPS and ther
    pulled out of GAO.  The problem is with MFG being down-sized in
    industry ( worldwide ) its hard to get any one, or even a few smaller
    industries that can accomodate the 1000 DECies + 2/3k others.
    
    When will there be an official story ?
    
    
    

    Well, considering that Digital's headquarters are based in
    Massachusetts.  And considering that Bulger holds considerable
    sway in Massachusetts (read more than Weld), it certainly would
    not hurt if he were to help in influencing the decision that
    Palmer will be making.  You can bet your *ss that London is
    pulling all strings to ensure that Ayr is selected.
    
    If you haven't noticed Ray Flynn has been instrumental in
    promoting the Galway-Derry-Boston trade fair, which has been
    helpful in bringing together companies and markets of all 3 areas.
    
    I just think it's a shame that Galway should close, given
    that DEC is poised for a rebound in the computer industry.
    If it must happen I hope that they can still retain some
    engineering there however.
    
    Sigh,
    /G

    Re: -.1 (job fair)
    
    My opinion, when Flynn helps in promoting the Boston-Galway-Derry trade
    fairs, its not because he wants good things to happen for Galway or
    Derry, its because he wants good things to happen for Boston.
    
    -- Jim

    I disagree entirely.  Flynn has a genuine interest in Irish affairs.
    He has promoted the MacBride principals, the trade fair (as mentioned),
    and also has setup an immigration center (to handle immigrants problems
    concerning health care, crime, employment, etc).  I'll say one thing
    that Ray Flynn has done more for the Irish than the Kennedy's have.
    
    I don't agree with everything that Flynn stands for, but give him
    credit where credit is due...

    Question, what percentage of GAOs are doing manufacturing these
    days?  And how many employees are there at Mervue?
    
    /G

    
    since last year they are all in one Plant, no more Mervue. I don;t have
    an exact breakdown, but I'd guess 400 Software Bus, 500 Mfg + Marketing
    and 100 (ish) Engineering.
    
    All are located in the Ballybrit plant.

    It is indeed sad in that whatever the decision, Ayr or Galway, jobs
    will be lost.
    
    Would it have been better sense to concentrate all these multinationals at
    one location (Shannon), intead of scattered throughout the country at
    Galway, Cork, & Tipp, etc.?  At least during recessionary times like
    now, other industries, such as biotech or pharmaceuticals, could take up
    the slack within the core area.
    
    In some sense DEC is only speeding up the inevitable (concerning the
    closure of manufacturing). As Gerry points out, there was talk about this
    happening years ago.  What has DEC Galway been doing to attract
    new or existing software development projects?  We've seen several
    successful project migrate to Europe, most notably RMS from Spitbrook to
    Reading/Livingston, and RDB? to Valbonne.
    
    Isn't Galway doing some security software?  Could someone fill us in
    on the software scene?
    
    /George

    My suspicion is that the British Government don't give a damn if the
    Ayr plant were to close. 
    
    I base my feeling on the fact that the Department of Trade & Industry 
    won't even get invloved with the Leyland/DAF business!
    
    (for your info the Dutch truck company DAF has gone into receivership, 
     and it is the parent company of the British truck company Leyland. The
    Government has stubbornly refused to get involved even though over
    5000 jobs are at risk in Leyland)
    
    Huw.   

    What the British government has said, Huw, is that it will not give
    Leyland Daf a direct subsidy to keep going.  What it has not said is
    that, if Leyland Daf were to continue operation, it would not award it
    any contracts.
    
    I am quite prepared to buy from my local shops.  What I am not prepared
    to do is both subsidise my local shops and buy from them.  The reason
    for this is that, if I were to subsidise my local shops, they would
    have no incentive to be efficient, so I would finish up both
    subsidising them and paying more for what I bought off them.
    
    Catch my drift?
    
    Joe

    
    That was my thinking also, as well as the ramification of Unfair
    Practises, as an early mail pointed out IBM and a few others are larger
    employers than DEC in Scotland.   That said, there appears to be a
    strong feeling that the deal was not lost on the basis of "core
    competancy", so if not, one must look for other reasons.
    
    Hopefully when (if) a formal decision is announced we will all hear
    why.
    
    

As we await the ' decision' announcement, the normally vibrant GAO workforce 
are slowly succombing to a despondant feeling of rejection, disappointment and a
sense of being let down.

The sad part is that as an operation, GAO presued and achieved the key metrics 
laid down by Mr Palmer as being neccessary for plant survival. As far as I know,
no other plant did that. If the decision is to close GAO then what does this 
say ??

At this time there is no communication from management on what is happening, 
what is being done and employees find this somewhat uncomfortable alos. All of 
the information available comes through the media, fuelling all kinds of 
specualtion.

It is reported that Dan Jennings is in Ireland now and has been since the 
weekend.

Following the return of The Minister for employment and enterprise  and the 
Lord Mayor of Galway from their 1 hour meeting with Mr Palmer on Monday last in 
Maynard, Dr A.J. O"Reilly, Chairman of Heinz Corp has gone to Boston to talk to 
Mr Palmer. This is at the request of the Taoiseach.

The taoiseach has stated in the Dail that the closure of Digital in Galway poses
a National crisis. Certainly,it would have a far more devestati-
-ng effect on Ireland  that the closure of the Ayr operation would have on 
Scotland.

I am going to post a letter that I just received over the internet. Please act on 
it if feel you can.


Its not over till its over.

Marto Hoary.

From:	VBORMC::"paraic@lcl.cmu.edu" "Paraic Sheridan Carnegie Mellon 
University"   23-FEB-1993 22:01:59.38
To:	galvia::jjoyce, siobhan@s3dub.ie, joe@rtxirl.ie, donohues@dcu.ie
CC:	
Subj:	Digital...

From patrick@cs.cornell.edu Tue Feb 23 15:51 EST 1993
        id AA09206; Tue, 23 Feb 93 15:46:24 -0500
To: irish-net@cs.cornell.edu
Subject: From the Galway Chamber of Commerce
Date: Tue, 23 Feb 93 15:46:23 -0500
From: Pat Stephenson <patrick@cs.cornell.edu>


Folks,

 As you are no doubt aware form last weeks edition of the IE, the
Digital plant in galway is in trouble.  I don't need to remind you all
of the great service we have been getting from Digital over the last
few years.  I've been asked by Terry Brennan of the Galway Chamber of
Commerce (via Ireland Online) to forward the attached memo to you all.
Please pull out all the stops on this one - it could make a
difference.

Pat Stephenson

--------------------------------------------------------------------
THIS LETTER IS FROM THE GALWAY CHAMBER OF COMMERCE AND INDUSTRY TO
                FRIENDS OF IRELAND THROUGHOUT THE WORLD

As you are probably already aware, there is a real threat that
Digital Equipment Corporation will close its Galway plant with the
loss of 1,100 full-time and 200 temporary jobs, in favour of a
plant in Scotland.  Should this closure take place more than 1,000
additional jobs will be lost in support industries and the Galway area
will be devastated.  The damage to the country as a whole will be
quite colossal.

Digital has been in Galway for almost 23 years.  It has been a
wonderful relationship, with Digital being seen by the local
community as a Galway company rather than yet another big
multinational.  Digital has benefited greatly from this
relationship, with a highly committed and tremendously loyal
workforce, and a close and productive relationship with University
College Galway.

It is hard for us to see the logic in a decision which would go
against Galway.  As I understand it, on a manufacturing basis,
Galway is a more competitive site.  It appears, however, that
market presence is swinging the decision in favour of Scotland.
That this should be a factor in the Europe of the 1990s is quite
incredible.  Rumours persist that the British Government has made
threats or offered inducements to Digital which would not be in
keeping with EC fair trade regulations.  I have no proof that
this is happening but can offer no explanation as to why Digital
should feel that it would lose business in today's open Europe by
concentrating its manufacturing in Ireland.

I don't know if it will make a difference at this late stage but
I would plead with all of you to send an electronic mail message
to Digital's corporate spokesperson throughout the affair, Nikki
Richardson of Maynard, Massachusetts.  Her e-mail address is:

nikki.richardson@mlo.mts.dec.com

If you feel that it is inappropriate that you send an e-mail with
your employer's name in the address then please phone or send a
fax to Ms Richardson.

Tel: 508-493-6369
Fax: 508-493-8154

Please urge your friends to do likewise.  If every recipient of
this letter could convince ten other people to contact Digital we
would have 20,000 messages reaching the company's corporate
headquarters in one day.  This would surely give Digital
management cause to review the situation.  IT IS IMPERATIVE THAT
YOU ACT NOW AS A FINAL DECISION IS IMMINENT.

In making your plea for Digital manufacturing to remain in Galway
you might wish to put some of the following reasons in your own
words.

- Digital would lose the good will of the highly influential
  Irish-American business community.

- Recognition that, more than any other nation, Irish people and their
  descendents are to be found in positions of authority and influence
  throughout the world.  More importantly the sense of Irishness is
  maintained, and a Digital closure would be taken personally in board
  rooms from Sydney to San Francisco.

-       It will be assumed that Digital gave into British Government
  pressure and the company's well-earned reputation for business
  ethics would be irreparably damaged.

-       Tremendous contribution made, and continuing to be made, by the
  Galway plant over the last twenty-three years.

-       Major risks associated with moving the work from a highly
  complex Galway plant to a somewhat less sophisticated Ayr
  (Scotland) plant.

-       Digital's investment in its other Scottish (South Queensferry)
  facility will ensure the continued good will of the British
  Government.

-       Digital was able to sell computers made in the Galway facility
  to the British Government (including the Ministry of Defence)
  before Ayr existed and there is no reason to doubt that it will
  not continue to do so.

-       Ireland is one of the few country's in the world where Digital
  is the dominant player in the computer market.  A decision to
  downsize Galway would be taken as a personal slight by the Irish
  business community and seriously impact Digital's business.

-       Irish taxation system has provided major advantages to Digital
  and will continue to do so.

-       Digital's own experience of opening plants in Germany and
  France has proven that there is little, if anything, to be
  gained by market presence.

-       Galway expertise provided the start-up team for Ayr, and Galway
  has maintained an edge for innovativeness over the years.

-       Galway's experience of absorbing the Clonmel operation proves
  that it can successfully pick up the work of another site.  Ayr
  has no track record.

-       If Dell's reputation for customer order responsiveness can be
  managed successfully out of Limerick there is no reason for
  Digital to move anything from Galway.

-       The calibre of graduates leaving Irish colleges each year far
  exceeds that available in Scotland and has prompted the Ayr
  plant to advertise for staff in the Irish media.


                     Thankyou for your co-operation,

                     Terry Brennan
                     (President)
                     (Galway Chamber of Commerce and Industry)



Barry Flanagan - <barryf@iol.ie>
 ----
| Company : Ireland On-Line Ltd. * E-Mail : admin@iol.ie
| Address : 11 Rockbarton Road, Salthill, Galway, Ireland
| Tel/Fax : +353 91 27544 * BBS : +353 91 27454 (v.32bis)



% ====== Internet headers and postmarks (see DECWRL::GATEWAY.DOC) ======
% Received: by vbormc.vbo.dec.com; id AA21349; Tue, 23 Feb 93 22:57:17 +0100
% Received: by enet-gw.pa.dec.com; id AA29163; Tue, 23 Feb 93 13:57:55 -0800
% Message-Id: <9302232157.AA29163@enet-gw.pa.dec.com>
% Received: by caesar.lcl.cmu.edu (15.11/15.6) id AA11785; Tue, 23 Feb 93 
16:57:03 es
% Subject: Digital...
% To: galvia::jjoyce, siobhan@s3dub.ie, joe@rtxirl.ie, donohues@dcu.ie
% Date: Tue, 23 Feb 93 16:57:02 EST
% From: Paraic Sheridan   Carnegie Mellon University <paraic@lcl.cmu.edu>
% Mailer: Elm [revision: 64.9]

re: .21

	Firstly, no decision has been communicated yet and it is still 
	debatable whether Galway or Ayr will close and it is an equal
	tragedy for either country. To say that one country or town will
	suffer more than another generates pointless bitterness in these
	tragic times and is totally false. Everything said about the world
	leadership qualities the Irish people applies equally to the Scots.
	Remember too that the Irish do not have exclusive access to the
	term "Celt".

	We should all take special care to ensure that the two groups of
	innocent victims in this debacle focus their energies in the 
	correct direction and not against each other.

A fellow Celt.
    

 Digital - Group asks company not to close plant in Ireland
	{The Boston Globe, 23-Feb-93, p. 37}
   A delegation from Ireland met yesterday morning with the president and CEO
 of Digital, asking him not to close an 1,100-employee plant in the depressed
 region of Ballybrit, Gallway.
   In response, the troubled $14-billion computer maker 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 counterclaims flying - was oddly reminiscent
 of the Maynard-based computer maker'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, expressing 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 downscaled 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 Mariott hotel, Charles F. Christ, VP 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.

    
    .22; Agreed in principle, I expect that when the reasons are made known
    ( and tehy should be ) it will be easier for people to understand and
    not overly personalise the situation.  Of course looking at the
    alternatives that GAO people have, one can not blame them for being
    bitter.
    
    If it becomes a political / EEC issue, I expect that Palmer & co will
    probably say; " Ok folks, I only need one, here are the facts and you
    pick it for me ".   That shold prove interesting.
    
    Either way, as .22 said, its going to be sad.
    
    

    Its done.
    
    At 10.00 am Irish time, in the canteen, Martin McCarthy issued a
    statement to the entire staff announcing that Hardware manufacturing
    is to cease but that Software manufacturing is to be retained.
    Certain activies hosted by the Galway site are under review in 30 days.
    Phase-out in a year.
    

    
    A SAD day for Galway and Ireland,what can a guy say.
                                                          Pat
    

     I can say that I've never felt or was made to feel more at home
    than I have here in Galway.
    

    
    This is sad.  I really enjoyed my 8 month assignment in the GAO plant.  
    The people were great and I learned a lot from them.
    

    I have to wonder though,  why can't the plant be sold operational.  I know
    many of you where searching for political intervention, but you are
    overlooking the tremendous asset on hand of the physical working plant.
    Product lines, highly skilled work force and capital investments made in
    the last year.  
    
    
    It would be too expensive to restart such an operation.  Don't give up.
    Push for the sale of the plant to another company.  Remember the Clonmel 
    plant was sold. So this precedent has been set.
    
    

                    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."

 RE: 1188.25

"Certain activies hosted by the Galway site are under review in 30 days."

Could you tell me which activities? 

Rgds

Mike B.

    
    Too bad. Now they'll be few people to put the NI issue into realistic
    perspective. Hope everyone gets fixed up ok elsewhere relatively
    quickly. 
    

    
    One of the most worrying facts about this closure for anybody who would
    hope to make their future in this region is that the decision was made 
    simply on the basis of where we are.  No matter what somersaults we
    turn or what hoops we jump, Galway will not achieve greater proximity
    to the British or mainland European market places.  We're learning
    something about the (lack of a) future for peripheral regions in the
    new Europe.  
    
    
    Liam

    RE: .23  by TALLIS::DARCY 
    
    >In a meeting at the Copley Mariott hotel, Charles F. Christ, VP 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.
    
    Need he go further East than Galway?
    

    How about DEC Albequerque New Mexico, transferring stage I business
    (modules) to Chihuahua Mexico?  It's seems a familiar theme here
    at Digital.  Galway is not alone.

  Let's be honest and paint this picture in true light.
  The Irish manufacturing employees at DEC Galway have
  had it stuck to them by their EC partner, Britain.

                        Mark
  

    Whereas it would have been so much better if Scottish manufacturing
    employees at DEC Ayr had had it stuck to them by their EC partner,
    Ireland, hey Mark?
    
    How long do you intend to allow before you let Ireland control her
    own destiny, and stop trying to blame everything that goes wrong on 
    the dreaded Brits?
    
    Joe

    I think you would have to be naive not to think that Britain
    did not use her political clout to help secure Ayr.  That being
    said, I think that France or Germany would have done the same
    thing, given the circumstances.  Not that it makes it fair however.
    
    One troubling thing is that Scotland now has 2 Digital manufacturing
    facilities (Ayr and South Queensferry) and Ireland has none.
    
    So much for EC partnership.
    
    /George

    Hell George, I'm sure the Brit government use its clout to try and secure
    Ayr as much as the Irish government used its clout to try and secure
    Galway.  
    
    I mean, what the hell we are paying them for?
    
    I'm just sorry it came down to be a choice between one and the other.
    
    Joe

    
    Please, in those sad times let us not make it a Irish/British incident.
    I really don;t think it was.  I don;t believe that Palmer or others
    would be silly enough to take the "possible $400m" seriously, even
    leaving the "fair practises" out of it.
    
    I hope that someone can publish the exact decision criteria and maybe
    also explain why Charlie Christ is building a new plant in Far East
    when 450k sq. ft lies vacant.
    
    The issue / problem is entirely a DEC issue and is similar to New
    Mexico, Puerto Rico and the 50+ sites closed in USA in last 12 months.
    

  re. .36

"Whereas it would have been so much better if Scottish manufacturing
    employees at DEC Ayr had had it stuck to them by their EC partner,
    Ireland, hey Mark?"

 Nope, I don't want to see the Scottish hurt either.  I'm only for a
 level playing field. When the British government tries to damage the 
 U.S. steel industry with unfair subsidies, we have the power and will
 to retaliate and force a level playing field.  The Irish do not have
 that luxury.

"How long do you intend to allow before you let Ireland control her
    own destiny,"

 I could ask you, a British citizen, and admitted British army terrorist,
 the same thing?

 Mark

    
    All I know is Culbert goes to Ireland and look what happens !!!
    
    
    
    

    
    Anyone how viable the Software Business will be, seeing that its
    probably that overheads and other costs will increas significantly with
    the smaller population ?.  I assume the same question goes for the 3 or
    4 small, hosted, engineering groups.  
    
    Hopefully they can stay, but with all the consolidating going on, costs
    is a major factor.
    

    re: .41
    
    <<How long do you intend to allow before you let Ireland control her
    <<own destiny,
    
    <I could ask you, a British citizen, and admitted British army terrorist,
    <                                        ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
    <the same thing.
    
    Right-on, Mark! Well said!!  Brit Army terrorist, indeed. Check out
    EF93 Note 83.44.

Mike,

	Having watched the process of growth brought to Galway by Digital over
the years I am pained at what I have heard described as the effect this closure
will have on the city. I have known no easier people to deal with than 
Galwegians. Clearly among the most hospitable people in the world. The fact that
Digital folks there took the news in a professional manner comes as no surprize.
Many of us on "this side of the pond" have made many friends and acquaintances
there over the years and we all know that when we again arrive in Eyre Square
there will always be someone there to down a pint with.

All the Best to Galway and her people.


Mike

Folks,

I still cannot comprehend this decision, short term or long term.
I may be biased but I can be objective.

- I supported the VAX 750 in the US and dealt with Galway Mfging very 
  successfully.
- I worked in ESASE in Galway for 3 years and highly respected the level
  of intelligent competency both in technical and social respects.
  Never have I worked with a more dedicated, thoughtful, perceptive people
  driven to high quality standards.
- Returning to the US I have again work repeatedly with Galway on VAX 6000
  and VME issues.  Nothing but praise and a sense of true camaraderie and 
  excellence.

I was not pleased to see COM close down but I thought the transition
of most products to GAO would be the best for the company from my past
experience.  

On a one to one comparison I heard that Galway was the "Best in Class"
Mfging plant over Ayr.  This goes along with Palmer's "new" Digital.
There is no doubt that the UK did some serious arm twisting to sway Palmer's
decision.  The last European revenue figures I saw had the UK at approximately
28% of our European revenue and Ireland was at around 2%.
Marketwise Ireland cannot compete against the UK, so much for a united Europe.

The operational move out of COM had its effect on the company, now we are
supposed to shift GAO operations off to Ayr, Albequerque and Augusta?

The Galway people have been very dedicated to Digital and have played 
a major part to our 60% corporate revenues in Europe.

How many of you visited Galway and were hosted by your contact?
How many of you were visited in the US by someone from GAO did the same?
Ireland is a special place with people always willing to give more of 
themselves and with a quality of life unmatched in the world I've seen.
I was at home in Galway and miss it dearly.  It is by far the best place
to live and work in Ireland and beyond.

It seems we are part of a world that will before long have everything 
made in Mexico and the Far East.

Enough said for now.


Slainte', may God Bless Galway and its people,
Paul Greenaway

    
    Sad thing to Galway, that nice town with warm atmosphere. 
    
    
    Hannu

I have had the pleasure of working with the folks from Galway for the last 2
years in the drive module business.  Many have come here to Shrewsbury, Mass
to work and visit.  To those that I've met and shared a meal with, thanks for
the good times.  Although I didn't get a chance to visit the plant in Galway
I'm certain I would be welcomed because of the reputation of Irish hospitality.

My heart is grieved for Galway, but I'm certain that they will bounce back
from this situation.  With their enthusiasm and dedication to problem solving,
they combine to make an attractive work force.

I pray that the Lord bless them with His peace that passes all understanding,
and comfort from the Holy Spirit be abundantly received!

Thank you Ireland for the time we have spent together,

Joe

    It is a sad day when people are put out of work by the changes in the
    high-tech business field.  Hopefully Digital and Ireland will be able
    to find a replacement for DEC in the Galway area so that the people of
    Galway will not have to suffer too long.  The task should be made
    easier by the reputation of the galway workforce for competence and
    professionalism.
    
    Andrew
    

    Re: .41 - Holohan
    
    I think you may discover, Mark, that the US quarrel is not with the
    British government but with the EC.
    
    By all means think of me as a terrorist if such pleases you.  I find no
    shame if maybe I have struck a little fear into the hearts of those who
    plant bombs in Belfast, London or, for that matter, New York.  Though
    it seems a trifle shameless of you that you should stoop to befoul a 
    topic such as this with your anglophobic hysteria.
    
    Joe

    
    	...it's interesting to note, that when the decision to close the
    	GAO plant was made, that there wasn't any plans made on how to 
    	go about doing this.
    
    	it will be an ongoing thing over the course of the year...with 
    	nobody having a hint on who's going now or later, phased over.
    
    	it occurs to me that if closing were in the planning stage that
    	there would be some indication of it....in talking with someone
    	there, 3 wks to a month ago the thought of closing was never 
    	entertained.
    
    	it's not like the roxbury plant closing.... DEC had payed big
    	bucks in moving the clonmel works and all to GAO.
    
    	is it the same reasoning being used to move a group in a building 
    	upstairs/downstairs....across the hall, etc...? to save a little 
    	money by spending ALOT of money?

    Are there any chances of the decision being reversed ?
    
    Is the Irish govt. making a counter offer? More tax free incentives
    perhaps.
    
    Govt. investment in upgrading the plant etc ?
    
    Have people just given up and accepted the closure or are they fighting 
    for a second chance ?
    
    As the previous noter (.-1) suggested, it may have been a rushed
    decision. 
    
    Tony.
    
    PS Whatever happened to "Do the right thing" ?

    
    I have created a notes file to allow 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 hear through the grapevine there will be a strike tomorrow at DEC
    plants in Germany.  Apparently, there are some 4000 DECcies in Germany
    (down from 4700) and Palmer wants that reduced to 2000 by next year.
    
    /George

    I work in the Sales Subsidiary in Dublin, and I'd just like to
    register my sorrow and my support for the people in Galway.
    
    I was in that city for a weekend on 6-Feb....even in the middle of
    winter it remains a lovely, friendly place....a multi-cultural,
    warm, friendly people. Galway, and its prosperity, was an Oasis in
    an increasingly impoverished (financially and spiritually)
    country.
    
    All I can say is I'm sorry , and good luck. We here in Dublin, will
    I'm sure, feel the tidal wave resulting from the closure sometime soon.
    
    Bye,
    
    Tadhg

    
    	i gather then, that germany is unionized?

    I am no expert in this but I work in the mnfg plant in Kaufbeuren.  We
    here , since about a year or so, have a Betriebsrat. That is something 
    like a workers council.  Only took 5 folks to get this installed and
    now they will be here forever.  Munich have this plus a union or unions
    as I understand that you join whichever union represents your
    skill/work area.  I also have heard that Munich will strike and I also
    hear wild accusations like 'the company will lock everybody out'; 'even
    if you don't strike you won't be paid' etc.  All rumour.
    If I learn anything factual will post it here.
    
    Rgds
    Cathy

    
    
    In a few hrs closure will be complete...
    
    sad day for galway
    
    mick

    
    
    All the best to my friends in Galway.
    
    
    It's hard to believe that it was back in 1972 that I helped 
    set up the original Ballybrit "Engineering Service Group", 
    working with Austin Molloy.
    
    
    keVin
    

        Good luck to you all in Galway...
        
        
        Simon

    RE: .59  by EASE::KEYES 
    
    >In a few hrs closure will be complete...
    
    I thought we were dividing the building and letting out the end where
    the cafeteria was.
    

    
    .....yes...your right..its galway hardware mfg thats going..gone
    
     Seemingly some company moving in ok...but no real prsence as of yet
    
    rgs,
    
    mick

    
    It was one of my favorite plants to have ever worked in. The people there
    were the best.  Ask for help and the charts, reports, drawings appeared
    on my desk like magic.  
    
    Gary
    	
    

    I agree.  We had several top notch engineers from Galway work with us
    on Nautilus and Argonaut.  A great bunch.
    
    I've a related question.  When Digital started in Galway in 1972? were
    there any other technical/industrial firms in Galway at that time? 
    Either in the industrial park or other areas of Galway?  In retrospect
    I'm wondering what level of impact did Digital have on Galway, as far as
    suburbanization, infrastructure, airport, second-tier industries, etc...
    Would the expansion have happened with or without "Digital"?
    
    I apologize if the questions appear insentitive given the recent closure
    of GAO.  I am just curious as to the industrial background of Galway
    pre and post Digital.
    
    /g

As a Galwegian I my view would be as follows :

There was no "hi-tech" industry per se that I can remember.  In fact the 
technologies as we know them today were in their infancy 20+ years ago.

Galway had 2/3 main industrial companies; SPS ( Standard Pressed Steel ?), who
made steel plates, nuts, bolts etc.  That was a big employer - probably 500 
people.  It was closing down as DEC arrived.

POTEZ - they made large industrial type gas heaters, they were in the building
now occupied by Thermo King.  I think they had 200 people there.

The 3rd company was making hydraulic fork lifts for use in the larger plants,
I can't think of their mane and they may still be there.

Then there were a few smaller companies (at least smaller then) like Northern
Telecom, Micro Motors - at that time they each probably had less than 100 
people.

As to the expansion of Galway; thats a hard call, one could ask if Digital
had not come to Galway, what other industry would have come ? certainly one
major industry would have come as Galway was is and one of the larger cities.
Would it have been Wang ?, Would it have been INtel - years later ?, Would it
have been one of the larger drug manufactures ?.  Too hard to answer that one.

I think that Digital definitely brought the "money" to Galway. They sub-contract
a lot of work and therefore kicked off a lot service industries.  At one level
they paid higher salaries and that kicked of a lot of home building, in the
late '70's and early '80's, Digital was the "funder" of the bungalow growth.

On the airport; again I think YES Digital was the main reason, but maybe had 
another high visible, financially strong company arrived they may have also
got the airport going.  One test will be how long will it survive now ?.

The building industry in the "suburbs" was underway before Digital expanded -
ie Riverside, Headford Rd etc.  Shopping centers were already underway and the
older companies - Corbetts, McDonags, Hynes etc were all thriving.

Other than that I think the city renewal would have happened.  Galway was and is
a classy city and always had a strong tourist trade. 

Thats my personal view and 2cents worth.