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Mayor calls on Dell to publicly state its job figures
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Dell will not say how many jobs remain at its desktop-computer-assembly plant in Forsyth County.
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Published: April 3, 2009
Updated: 04/03/2009 12:28 pm
Stung by another round of layoffs at the heavily subsidized Dell Inc. plant, Mayor Allen Joines today called for Dell to provide detailed information about employment at its computer-assembly plant in Forsyth County.
Joines also invited the plant's director of operations to discuss the issue at the May 11 meeting of the City Council's Finance Committee.
Dell yesterday had more layoffs at the plant, the second straight month of layoffs. Joines had said yesterday he was unaware of the latest action. The company has been tightlipped about reductions in the work force at the plant.
The city's financial incentives to Dell are predicated on the plant employing a least 1,700 people at an average yearly pay of $28,000 by October 2010. The plant has confirmed layoffs at the plant but has not provided current employment figures.
"Dell is, and I am confident will continue to be, a valued member of our business community,'' Joines said in a statement. "It is important to keep in mind that they are still among our largest employers and have made more than $100 million of taxable investment in our community that generates a significant amount of property tax.
"That said, I, and the City Council are increasingly concerned by the company's withholding of employment information related to incentive requirements. I recognize that these are very difficult economic times, however, the people of Winston-Salem have invested in this company and deserve more forthcoming communication, especially now when open and active dialogue between the public and our corporate leadership is so critical."
Donna Oldham, a spokeswoman for Dell, said that yesterday's cuts were part of a larger "global work-force reduction." She said that Dell eliminated the jobs to stay competitive.
"Over the past 18 to 24 months, we've made a number of tough decisions," Oldham said. "This work-force reduction is difficult, but this is an action that is prudent."
Last month, Dell cut about 150 full-time jobs at the plant, although it has declined to confirm or deny the number. Dell had reduced the number of 115 contract workers in early November as part of its decision to end a weekend shift it had started in May.
Oldham would not say how many positions remain at the Forsyth plant, where the company assembles desktop computers. The plant was opened in 2005. Under its deals with the state, city and county, Dell is eligible for as much as $305 million in incentives, depending on the size of its work force and capital investment.
With the job cuts yesterday and in March, it is not clear how many people Dell is employing locally. Dell officials had been saying since September that the local plant had about 1,150 badged employees -- and about 1,100 since May 2006.
The statement today is the first time that Joines has expressed frustration with a company that he did much to support. Joines is seeking his third term as mayor in the November election.
Winston-Salem and Forsyth County have so far paid Dell $22.2 million in incentives, including $14.5 million in site-preparation work for the plant, which is on Temple School Road.
In exchange for the incentives, Dell had to invest $100 million in the plant and agree to employ 1,700 full-time workers at an average salary of $28,000 a year by October 2010.
Dell has met the investment portion of the criteria with its $115 million plant.
If Dell does not have enough employees on its payrolls by the October 2010 deadline, it will be required to repay a percentage of the property-tax breaks it received to both the city and county, and will see future tax breaks reduced. The company would have to repay all of the money it has received only if the plant closes by October 2010.
Dell's decisions to cut an unspecified number of badged employees and contract workers, and to stop providing local updates on the work force raise doubts about how well the plant is performing. Media outlets have reported that Dell may be considering selling or closing many or all of its domestic plants, and outsourcing production to third-party vendors.
Because of Dell's stance, the community is likely to be limited to annual employment updates that could be several months or more than a year old when they are made public.
■ Laura Graff can be reached at 727-7279 or at lgraff@wsjournal.com.
■ Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.
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