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Dell is turning its back on the U.S. – Just say no to Dell

Dell closing W-S plant

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Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.

RESEARCH TRIANGLE PARK, N.C. – Dell has turned its back on the United States. Isn’t it time for us to do the same?

As far as The Skinny is concerned, there will be no more Dell products brought into the homestead. Enough is enough.

The bile rose in my stomach as I read the alerts about Dell’s decision to close its manufacturing plant in Winston-Salem. More than 900 people will lose their jobs.

Dell also is shuttering operations in Tennessee.

Making matters worse, Dell later noted in a document filed with the federal government that those jobs are being offshored to “third party” workers, primarily in Mexico.

Dell has agreed to repay more than $26 million in tax incentives to local governments and economic development funds in the Triad since it didn’t meet contractual requirements signed in 2004 when Dell picked N.C. for the plant. Good. It’s too bad that there aren’t some stiff fines that can be levied against the company for pulling out and leaving behind a 750,000 square foot carcass as well as a cemetery filled with employees’ dreams.

Gov. Bev Perdue has vowed that Dell will repay “every red cent” it received from the state as part of a $240 million-plus package. Let’s hope so.

But the costs to North Carolina and to the general public will be many even if all the incentives are repaid.

First, there is the cost of unemployment benefits.

Second, because the Dell jobs are being off-shored the former Dell workers will be eligible for additional benefits under the Reemployment Trade Adjustment Assistance program. Among the benefits are up to $12,000 over two years in “supplements” for workers 50 and over who have to take a job that pays less than they made at Dell.

How long are we Americans going to let corporations continue to outsource and offshore jobs without making these firms pay a price – as in a boycott?

Call me a red neck if you like. Call me an isolationist. What I call myself is worried – worried about our country where unemployment at 10 percent is about to be accepted as the “new normal” while Dell, IBM and many other firms ship jobs to cheaper places.

To stay competitive, these companies say, they must offshore and cut costs.

Well, what if Americans finally said “No more!” and refused to buy those firm’s products? After all, at least for the time being, the U.S. does remain the world’s heart when it comes to commerce.

To me, it’s no surprise that Dell’s global market share is dropping and HP has surpassed it as the No. 1 PC seller in the U.S. Dell is busily moving away from the hardware that now is a commodity business and its purchase of Perot Systems will make the firm more of a services provider. Even as netbook sales explode worldwide, Dell founder and Chairman Michael Dell recently dissed them.

It’s time people began dissing Dell.

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The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…