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Fears of more job losses at Seagate

By Brendan McDaid
Friday, 16 January 2009

Seagate has confirmed that it has not ruled out more redundancies following concerns over rumours that 140 posts are to be axed at the Londonderry plant within a fortnight.

Concerned workers and union representatives have called for clarity from the US technology firm which employs 1,400 people at its Springtown plant in the city.

The concerns were raised |following the company’s announcement that a third of its staff — over 400 employees — on the largest salaries are to have their wages cut by 10%.

The company also said that to date no more than five job losses were immediately envisioned.

However, one concerned worker at the plant contacted the Telegraph claimed that staff were told at a meeting that a further 140 jobs could go at the plant in two weeks time.

Gareth Scott, regional organiser for the UNITE union, which represents some Seagate workers, has also expressed concern.

He said: “We have also heard these rumours which are completely contradictory to the statement the company made.

“We haven’t been able to confirm anything as yet and we are currently seeking clarification from the company. What we want to know is whether there are any job losses and whether the company may be looking at voluntary redundancies which they may not have counted as job losses.”

Responding, a spokesman for Seagate said that the company had acknowledged that it may have to look at further redundancies.

He said that the figure of 140 was posed by someone asking a question at the meeting, and not by representatives from the company.

The spokesman said: “It is speculation at this stage because a plan has not been drawn up. We have acknowledged the fact that we may have to look at further redundancies at Springtown.

“Redundancies is one of the options, pay cuts for those that were not affected by yesterday’s announcement is another option, reduction in working times is another.

“We will speak with staff within two weeks.”

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