Up to 150 jobs could be under threat at Stream International’s call centres in Londonderry.
The fears come as it was confirmed that some of its local contracts with Logica are set to end, with 150 employees now put on protective notice.
Stream Global Services, Inc employs 800 people at its two facilities in Derry, at the Buncrana Road in the cityside and at a second site in the Waterside.
Stream has now confirmed major broadband client Logica has altered its strategic business model, to include an additional outsourcing provider to that in Derry.
Jeff Jennings, country manager for Stream’s UK operations, said: “Our employees are extremely important to us and Stream intends to reassign employees affected by this recent change where possible. We aim to keep any redundancies at the site to a minimum.
“While everyone has been notified, formal meetings with elected employee representatives will take place next week per TUPE regulations.
“Our objective is to try to minimise the impact to our employees as much as possible.”
In a statement, a spokesman for the company today added: “Stream remains a leading outsource provider to its client, and expects to continue to provide support services for some of the company’s key lines of business.
“However, in future this will be as part of a two vendor strategy. As a result of the client’s strategic outsourcing decision, a number of contracts currently managed by Stream in Londonderry will end and transition to the new provider, constituting a relevant transfer under the TUPE regulation (Transfer of Undertakings & Protection of Employment).”
He added that Stream was “committed” to its operation in Derry and recently increased its sales and management resources in its efforts to continue to attract world-class clients to the site.
“Derry is seen as a strategic location for Stream and the facility has been offering integrated support solutions to leading companies around the world since 1995. Stream is an established, reputable employer in Londonderry and looks forward to continued success in the community,” he said.
Speaking after discussions with Stream bosses, Foyle MP Mark Durkan said that the company was doing all in its power to actively save the local jobs by bringing in new clients.
Mr Durkan told local radio: “The company is trying to do everything it can to attract new contracts. The company has had to give due notice and that is right and proper.
“As far as I am aware this will take a few months to take effect. The company are giving the sort of notice they need to give and maybe a bit more.”
He said that it was now vital local political and business leaders rallied behind Stream and help in its efforts to secure new contracts and help safeguard as many of the jobs as possible.