Lebanon May Sue Dell Over Job Cuts

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LEBANON, Tenn. - Lebanon city leaders have threatened to take legal action against Dell Computers. They say the company is not honoring an agreement to provide hundreds of jobs in exchange for big tax breaks.

Traffic from the Dell plant just next door meant business for Roberta Sa-Luke-is, co-owner of Coach's EastGate Grill. Now the company parking lots seem empty and traffic is a trickle.

"It's not as busy. It's impacted us," she says.

In January, Dell shut down part of its operation in Lebanon. The facility remained open, but cut roughly half of the 1,000.

City councilman William Farmer says in 2000 the city gave Dell a 40-year-tax break on property for its plant. In return, Dell agreed to provide 1,000 jobs annually until the year 2040.

"A 40-year-old deal is a contract. You stay around and continue to have jobs and be a good corporate citizen," says Farmer.

The city council is so concerned about what's happened they have asked the city attorney to look into suing Dell for breach of contract.

Farmer says Dell has saved more than $800,000 thanks to the tax breaks. Now he worries the company will soon cut more jobs.

"I understand the economy. It's a problem, but you need to be a good corporate citizen and not treat people the way they have," says Farmer.

For her part, Slukis is willing to forgive and forget if only Dell would brings back the jobs.

"I would love to see them all come back - that would be wonderful," she says.

It would be nice not just for the workers who get their jobs back, but also for the many nearby businesses that sprouted up around the plant when it open in Lebanon nine years ago.

Dell would not comment on the future of its Lebanon plant or the number of people currently working there. That's part of the frustration for the city council members.

Dell does still remain a major employer in the mid-state. An estimated 500 people still work in Lebanon and another 3,000 or so work in the Davidson County plant near the airport.