DELL'S DECISION to move from Limerick to Lodz involves several interesting tidbits of information. Some of these details will emerge in a business show on PBS television next month. Today, Derek Scally points out a few things readers might not know.
Big Difference in Pay. You get EUR 2.89 an hour working on the assembly line in Poland. Similar Dell manufacturing workers in Limerick were getting EUR 10 an hour. Supervisors in Poland get EUR 2,500 a month while senior managers in Ireland can earn between EUR 3,500 and EUR 10,000 per month. The cost of living in Poland is approximately the 1992 Irish cost of living.
Special Economic Zones. Like the Shannon Free Zone near Limerick, the Special Economic Zone near Lodz involves some tax breaks. Dell and Procter and Gamble have enjoyed benefits. If Dell stays until 2020, the company will pay no corporate tax or property tax for the first decade.
Logistical Support. Lorries travel from Lodz to Berlin in five hour and travel to Brussels in 12. The emerging eastern market means 230m potential Dell customers live within 1000 km of Lodz.
Derek Scally -- "Dell gets a cool Polish reception" in the News Features section of The Irish Times, 17 January 2009.
John Kennedy -- "Multi-agency response needed to counter Dell Limerick withdrawal" in the Irish Independent, 29 January 2009.
Sent mail2blog using O2-3G Typepad service in blustery conditions along the M8, County Laois, Ireland.