back to article Intel told Irish council all was well just before 12k job cuts announced

Irish county councillors are worried by Intel's refusal to tell them if local redundancies are coming. Intel's Leixlip fabrication plant employs more than 4,500 people in Kildare. The company's operations in the rest of Ireland employ a further 700 people. On Tuesday, CEO Brian Krzanich announced that about 12,000 people, or …

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Why does this always come as a surprise to politicians?

Its as if they expect companies to be honest about this. The same happens over and over again. In the UK, Kraft bought choccy maker Cadburys after assuring the UK govn there wouldn't be any redundancies. Guess what happened shortly after the aquisition?

When it comes to promises about keeping jobs and factorys, companies should be assumed ot be lying unless proven otherwise since its not in their interests to tell the truth - their share price would nosedive and the workers would probably call a strike.

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Headmaster

Re: Why does this always come as a surprise to politicians?

Two things - firstly, they may not have thought it all through yet. They may have just said "we need to cut $X from our headcount budget, which is probably Y staff". The senior management will currently be engaged in bunfighting to see whose empire is cut by how much. It doesn't seem like they have even got to this stage.

After that, there's a stage of allocating the cuts to sub-divisions, seeing which factory can do what and working out how best to fill desired capacity with available resource. At that point there will be a rough plan, and this is when the councils/govmts/workers will find out their probable fates.

Following that, in the UK at least, Intel may have to enter into consultancy with the workforce if the cuts are above a certain size. This consultancy may well adjust the plan (although I've not known it to make any significant changes ever), and could potentially get influenced by more govmt cash incentives (if this is legal!). If is no surprise that the party line is "We are not providing site-specific information at this time, and we are still evaluating our plans for Europe."

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Re: Why does this always come as a surprise to politicians?

When it comes to promises about keeping jobs and factorys, companies should be assumed ot be lying

Listed companies are obliged by law to release "price sensitive" information to the markets in a controlled manner, and as specified by the listing rules for the exchanges the company trades on. Had Intel let on to the Irish council that the plant was either doomed or guaranteed a safe future, they'd be in breach of the listing rules, and potentially face legal action shareholders and fines by regulators.

If anybody asks what is going on before a big announcement, be they a shareholder, customer, employee or local government, they'll not get a straight answer. The only exception is where you have a statutory works council who may be entitled to pre-decision consultation, but even they will have to operate under absolute secrecy.

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Re: Why does this always come as a surprise to politicians?

'Listed companies are obliged by law to release "price sensitive" information to the markets in a controlled manner'

It depends when the last meeting with the council was but it seems dubious whether 'at the last meeting between Kildare County councillors and Intel, the company claimed things were picking up' is a controlled manner.

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Re: Why does this always come as a surprise to politicians?

"Listed companies are obliged by law to release "price sensitive" information to the markets in a controlled manner,"

I doubt this applies to releasing information to government offcials when a government can easily get a warrant to sieze the information if its in the national interest. It would be in any companies interests to co-operate behind the scenes especially if said government gave or is going to give further subsidies and tax breaks and could make a big public fuss if the company proved difficult.

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Wonder how much

They got in grants to locate there?

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parallels

I'm starting to see a lot of parallels between the IT industry and the banking industry.

Huge size, employing large amounts of employees in cities.

Beholden to shareholders somewhat for most.

Global industry employing the brightest of certain specialists plus others in company running.

Leading edge adaptation of new working methodologies and restructuring.

Ruthless cost cutting.

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Anonymous Coward

Re: parallels

I'm starting to see a lot of parallels between the IT industry and the banking industry.

I'd agree. But I challenge you to establish an organic wholegrain, vegan technology company, run for the benefit of its employees producing either software or hardware, and let's see how far you get?

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Facepalm

Re: parallels

You forgot

"Taxpayer bail out when it all goes TITSUP"

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Re: Wonder how much

According to Wiki:

To base its European operations in Ireland, Intel received over IRE£87m in grants from IDA Ireland

From the context, it would appear that this was around 25 years ago, but no date is actually given.

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Re: Wonder how much Re Wiki

I cant imagine Intel have any input on there, can you?

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Re: Wonder how much

Yeah, they set up in 1989 so the IR£87m probably dates to around that time. They certainly received more grants since then - IR£26m in 1996 for example (http://www.irishtimes.com/sport/intel-top-of-ida-league-with-26m-1.85886), so who knows what the actual total is.

It's almost certainly a hell of a lot less than US$12.5bn though, so lI'd call it a win overall - http://www.idaireland.com/how-we-help/case-studies/intel/

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Re: Wonder how much

From the context, it would appear that this was around 25 years

If the grants have not been repaid, 87£ with 25 years of compound interest assuming an average 5% rate are 294 million. 5% is actually significantly less than Intel bond rates over some of this period so its a fair deal

So if the grant has not been repaid - well, they should pay up. Same as for any other grant.

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Re: Wonder how much

Grants don't have to be repayed - that's why they're called grants and not loans.

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Re: Wonder how much

They would only have to repay a percentage of IDA grants if they leave the country completely.

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Re: parallels in cock ups which solve nothing and compound the problem

That sounds very Port Talbotish, Boris the Cockroach.

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Slx
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They always release this kind of information on a 'need to know' basis and it's likely that even the local management isn't aware of the details.

Unfortunately, it's very unlikely that Kildare County Council, the Irish Government, the workers or much of the management structure of Intel itself will know anything about it until the company sends a press release or holds a conference.

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Anonymous Coward

Tax-dodging MegaCorp fails to tell the truth...

Colour me surprised....

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Anonymous Coward

who gets told first.

Why do county councillors think that they are going to be told before employees and stock holders. It all depends on where the cuts are going to happen. Its likely that there will be job losses in Leixlip but the scale is unknown. Its tough to watch good people go but the fact is that Companies lay people off and take them on as conditions apply. The sixty day gap is actually statutory which is a prolonging the agony for most of us but its the law. This would show how well informed our county councillors are. The County Councilers would be better suited to ensuring that there are adequate levels of salt to salt the roads so that those of us who are lucky enough to be still there working there come winter can actually get to work. Its a tough time for everyone in the company my thoughts are with my colleagues who are impacted. Anonymous because I still work there, for the moment at least till I hear different.

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Capitalism works.

Doesn't it?

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Thumb Down

Down with Capitalism.

Equality through universal poverty.

Poverty for the many, not the few.

Idiot.

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Ah... if you were in the States, then Bernie Sanders... yes?

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Yep, I'm a pure idiot for disliking greed and the contempt big business has for the public.

Makes me a complete idiot to want fairness, to not see children grow up in poverty in a time when we've never had so much money.

Makes me an utter idiot to actually care about people who are worth caring about, instead of the ones who hoard all the money who expect respect as a given without earning it.

But I'm happy being an idiot, especially as it sets me apart from a dickhead like you.

Good day, sir.

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hard to say

Corporate Capitalism is not the only the form of capitalism but it is what the whole US culture is based on.

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Can't trust Multi National esp. North American ones

Isn't it time we learnt that the multi national companies cannot be trusted. They have the power to blackmail. What is it that Intel wants; to pay no tax?

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