Engineering firm to axe up to 15 jobs following takeover
Up to 15 jobs are set to go at a Londonderry engineering firm just three weeks after it was taken over.
Maydown Precision Engineering (MPE) was acquired by Waterford firm Schivo for an undisclosed sum after entering administration.
It currently employs 133 staff and will continue to be based at its manufacturing facility.
But between 10 and 15 staff are now facing redundancy as the firm intends on slimming down its workforce.
Operations manager Bosco Kelly told the Belfast Telegraph some staff would now face redundancy in order to secure the rest of the workforce.
There had been fears from the union Unite that further jobs could be lost.
It said its members at MPE were issued with letters this week warning of possible job losses. But Mr Kelly said: "It is irresponsible for the union to say that.
"We have major contracts in place, and we have to give confidence to our customers and build that up." And in a statement from Schivo, a spokesman said it was "inaccurate" to suggest the entire workforce could be at risk.
"Schivo NI has not breached any existing agreement with any trade union and 133 jobs at the facility in Londonderry are not at risk.
"Schivo NI recently acquired the business and assets of Maydown Precision Engineering and in line with restructuring the business, a small number of staff in roles that are not key to the growth and development of the business have been informed that the company is considering making their positions redundant.
Between 10 and 15 positions are under consideration, although at this stage nothing has been decided."
Schivo said it was "committed to the long-term growth and development of the business" in the city.
It was responding to a statement from Unite, which said it was "hoping that the acquisition of Maydown by Schivo NI would mean a better working relationship between management and the union.
"Unfortunately, instead workers have been issued letters warning about unspecified numbers of job losses at the company which raises serious concerns for the future."
Following its takeover by Schivo, MPE managing director Sean Phelan said the deal "represents a new chapter" in the firm's story.