Seagate: Over 200 workers apply for voluntary redundancy

Derry’s biggest employer Seagate sees over 200 workers apply for voluntary redundancy.

Around 220 production operators have applied for voluntary redundancy – around double the number of employees that had been expected to go as part of cutbacks.

In May, it was speculated that 116 jobs, over 7% of the workforce, would be cut, 70 of them operators of machinery.

People Before Profit Cllr Shaun Harkin said the number of workers applying for redundancy reflects 'how they've been treated by the company'.

“It's a real indicator that so many might opt-out when there's cost of living hardship, economic uncertainty and the jobs climate in Derry and the north west. This wouldn't be happening if people were properly valued and respected,” he said.

“Last year Seagate posted record revenues of close to $12 billion. In 2022 the company posted record profits of $2 billion. It handed out massive payouts to shareholders but then claimed they could only afford derisory pay rises for workers struggling to deal with a cost of living crisis.”

He said workers need trade union representation to get a fair deal and push back against ‘unregulated corporate greed at Seagate and political failure at Stormont’.

“Whatever narrative the CEO is using to justify what the company is doing, it can't be trusted.

“Seagate should be leading the way in terms of good pay and respecting what workers are campaigning for,” he said.

“Stormont has certainly failed to initiate a strategy to charge up economic investment in Derry and the north west. Invest NI, the organisation tasked with this, has been exposed to be corrupt, rudderless and actively reinforcing prejudices against Derry and the north west,” he added.

Cllr Harkin called on US Special Envoy to NI for Economic Affairs Joe Kennedy III to get involved and act on his pledge to 'double-down on the US commitment to spreading prosperity' across the North.

He said the redundancies will be a big loss for the company in terms of skills and capacity.

In 2022 Seagate’s turnover was $11.66 billion with an operating profit of almost $2 billion. The company paid out $2.4 billion in dividends and buy-backs to the exclusive benefit of shareholders.

Despite those profits, this is the second round of job cuts in the past year.

The company has received almost £60m in funding from Invest NI — that's 37% of funds Derry City has received from Invest NI over the past 20 years.

Speaking for Unite the union, Regional Secretary Susan Fitzgerald said there is 'no justification' for the company making cutbacks.

“Last year Seagate paid out a colossal $2.4 billion to enrich shareholders in dividends and share buy-backs – that’s more than the company made in profit the same year. They now want to use a temporary drop in demand to strip-back production at Springtown – there’s no justification for reductions,” she said.

“Unite the union is closely reviewing the situation and we will be discussing an industrial response with our members and reps if this involves any attempt to impose compulsory redundancies.”