Seagate has been urged to be “upfront” with more than 1,000 workers at its Derry manufacturing site over fears of massive job losses.
The hard drive manufacturer, one of Derry’s largest private sector employers, has said it will not “speculate” on “a number of positions”, but confirmed that a “global restructuring plan” is underway.
DUP MP Ian Paisley said the news shows “hype and job bonanza announcements” in Northern Ireland from US politicians were “all talk, no pants”, while Aontu councilor Emmet Doyle asked for clarity from the company.
Read more: Seagate workers hope for breakthrough with unions months after job cut fears
A formal announcement from Seagate is expected this week. The fears of job losses come just days after US special economic envoy to Northern Ireland Joe Kennedy visited the factory as part of a visit to Derry.
The company was recently fined $300 million for violating trade rules related to the Chinese market.
Export control regulations introduced by the US government mean that Seagate can no longer supply a significant market without risking further action from US authorities.
The $300 million fine was imposed for selling drives worth more than $1.1 billion to Chinese giant Huawei between August 2020 and September 2021.
Huawei was placed on a US trade blacklist in 2019.
A Seagate spokesperson said: “The company has committed to a global restructuring plan to reduce its cost structure in response to changes in macroeconomic and business conditions.
“The global plan is designed to align the company’s operational needs with the near-term demand environment while continuing to support the long-term business strategy.
“Seagate cannot speculate on numbers or positions while our restructuring is underway.”
DUP MP Ian Paisley said: “In light of Seagate’s job cut announcement, where are the Americans and all their pledges?
“It’s a real revelation that less than a week after the QUB conference and all the hype and announcements about a job bonanza, it was all out of whack.”
He added: “Northern Ireland doesn’t need this kind of hyped-up talk, it needs real, steady, determined investment that is a long-term commitment to the people here.”
Emmet Doyle, Aontu council member, meanwhile, said, “We are being whispered locally by Seagate management about the potential for job losses in Springtown. Employees need to be told ahead of time what is happening.”
He continued: “We had the ‘Economic Envoy’ last week praising Seagate as proof that Derry was not lagging behind – those words rang hollow then, as they do now.
“Only recently we had politicians beating each other up more than a quarter of a century since the Good Friday Agreement – supping with the great and good and now this.”
Mr Doyle added: “We have a duty to support these workers to the fullest and secure these jobs for Derry.
“The impact of what is being mooted will affect many in the supply chain across the Northwest and wring hands as Seagate confirms that the news will fall far short of what these workers and their families need from political leaders.”
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