Cars stream out of the Dell plant in March after a layoff was announced. FILE | HPE
Dell was pledged the largest, combined state and local incentives package in North Carolina history five years ago when it announced plans to build a computer manufacturing plant. But Dell, which is looking to save $4 billion corporatewide, last week announced it will close the Winston-Salem plant in January, putting 905 workers out of a job.
Dell’s incentives, which could have totaled more than $300 million, were to be phased in during many years. Dell already has received some incentives payments from the state, Winston-Salem and Forsyth County.
The state expects to recover the $1.5 million in Job Development Investment Grant funds, said Katharine Neal, assistant secretary of communications and external affairs with the N.C. Department of Commerce in Raleigh. But Dell received other benefits, such as $3.6 million in work force training funds, that the state doesn’t expect to recapture.
Winston-Salem Mayor Allen Joines said last week he expects local governments will recover the incentives money floated to Dell, which totals about $26 million.
Two leading legislators say the Dell deal should lead to greater scrutiny. “I think the Dell experience will lead legislators to look more carefully at the incentive packages,” said Rep. Paul Luebke, D-Durham and senior chairman of the House Finance Committee.
Luebke, who voted against the Dell incentives during a special N.C. General Assembly session in November 2004, said legislators may require companies to pay back more of the benefits they receive if they close plants early.
When legislators took up the Dell legislation in the one-day special session, they were told by officials of then-Gov. Mike Easley that no changes or amendments could be made or Dell wouldn’t pick North Carolina.
Sen. Phil Berger, R-Rockingham and Senate minority leader, voted for the Dell incentives five years ago. But the closing of the plant ought to cause state and local officials to re-examine incentives offers, especially extraordinary ones, said Berger, who represents parts of Guilford County.
“We need to be real careful. This is a wake-up call,” Berger said.
pjohnson@hpe.com | 888-3528
Doesn't it cost money to train the unskilled workers in Mexico and third party providers? Of course it does - this is just another 'blowing in the wind' politician. Who pays for these costs? Taxpayers will in the end.
I'm quoting "Mexican labor costs basically are 10% of US costs, according to AMTAC in Washington!" Well, this being the case, wouldn't the shipping and handling costs add up to more than 10%? Did no one think this S & H money would be added back to the cost of anything consumers buy?
Taxpayers would like to know who pays the salaries for all the coalitions, non-profit organizations, and Good Jobs First in Washington that, like politicians, sit back and dole out decisions that's certainly not good for America, let alone North Carolina, but yet, politicians hop on the bandwagon, because someone in Washington says so. Let's look at common sense "if it sounds too good to be true, it probably is!" I'm sure no one in politics understands facts and figures and this is why when the "Mr. Slick comes to town with his presentation and meets with the local, state, and federal politicians, they don't want Taxpayers to know they don't know nor understand what's going on nor how private businesses run. After all, they couldn't hold a job in the private sector and this is why their in local, state, and federal jobs! They also feel "it's not their money". Taxpayers feel this type of thinking is what put America into bankruptcy!
Taxpayers have the right to put an end to INCENTIVES! THIS SHOULD BE DONE IMMEDIATELY, AS GETTING PEOPLE'S HOPES UP FOR A 'TEMP' JOB (AND MOST INCENTIVE-TYPE COMPANIES ARE JUST TEMPORARY),AND IS NOT STABILITY, LET ALONE GOOD FOR OUR CHILDREN AND GRANDCHILDREN!
Since Politicians have been selling sold America out for years, Taxpayers should go after them and 'COLLECT EVERY RED CENT, DON'T YOU THINK SO?'