Seagate workers fear Derry lay offs

Workers at the Seagate Technology plant in the city have expressed concern at the company's reported plans to lay off 8% of its global workforce.

Derry City and Strabane District councillor, Shaun Harkin (People Before Profit) will seek to have the matter raised as a matter of urgency during Chairperson's Business at Thursday's October plenary meeting of the council.

Speaking to Derry Now, Cllr Harkin said: "Seagate workers are very concerned at the company's announcement it plans to lay-off 8% of its global workforce. This amounts to 3000 workers.

"Seagate has made tremendous profits in recent years. This is reflected in its  shareholder payouts and big pay increases for top management.

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"It still remains profitable but has seen a slowdown. However, this slowdown was expected and the company's own financial projections are very upbeat.

"We need to do everything we can to ensure workers in Derry and the North West are protected."

According to Cllr Harkin, more than 400 workers have signed a petition expressing their frustration at a recent well below inflation pay increase and requesting trade union representation by Unite. 

Cllr Harkin said: "Trade unions have played a crucial role in gaining workers improved pay rises and protecting many households facing uncertainty.

"We have called on political representatives to be a voice for Seagate workers.

"We're disappointed none of the big parties, including MLAs and the MP for Foyle, have shown any willingness to support Seagate workers demands.

"Following big payouts to shareholders and pay hikes for its bosses, a highly profitable company such as Seagate should be making sure none of its workers are dependent on food banks or having to access Council hardship funds. Seagate is well able to protect all its workers during a spiralling cost of living crisis. 

"Doing everything we can to protect local Seagate workers is now a matter of urgency for everyone," said Cllr Harkin.

In pursuit of trade union recognition at Seagate Technology, all of the councillors on Derry City and Strabane District Council, all Foyle MLAs and Column Eastwood MP were asked to sign a letter addressed to Seagate management.

The letter said: "We, the undersigned political representatives, support the demand of Seagate workers for a cost of living pay rise and for trade union representation.

As elected representatives we know how many people in Derry and the North West are struggling like never before because of price hikes beyond their control.

As a consequence of the historic rise in inflation PricewaterhouseCoopers estimate workers here will suffer a £2000 cut on average to their incomes in 2022. 

At the same time, many big corporations are posting record profits. 

Government, both Westminster and Stormont, has provided very little support for workers and all those facing hardship. Therefore, pay rises in line with the cost of living is for most working households the main way of gaining some protection. 

Based on Seagate's own financial reports and shareholder payouts, it's clear workers can receive a better deal than the recently announced pay increases. And this is the right thing to do, especially for companies with the means to do it.

The cost of living crisis also makes clear why workers need a collective voice. Therefore, we urge Seagate management to support, and not hinder, the effort to gain trade union representation. 

Please contact signees if you wish to discuss this further."

The letter was signed by: Cllr Shaun Harkin, Cllr Maeve O'Neill (PBP), Cllr Gary Donnelly (Independent), Cllr Sean Carr (Independent), Cllr Paul Gallagher (Independent), Cllr Raymond Barr (Independent), Cllr Emmet Boyle (Aontú),