THERE are fears for thousands more jobs across Northern Ireland as major employers look to cut costs in response to the impact of Covid-19 on the economy.
US insurance giant Allstate is the latest global firm to put its workers on notice of potential major job losses across its operation. The company employs 2,300 across Belfast, Derry and Strabane.
Its global chief executive Tom Wilson, in a video conferencing call yesterday afternoon, told senior team leaders that "thousands of jobs" are to be lost across the company at all levels, with specific announcements on each region like to follow in the coming days.
It comes as unions and business groups warn that thousands of jobs are at risk within the north’s highly skilled aerospace sector if the Executive and UK Government do not intervene.
Bombardier’s confirmation yesterday that it will make 600 workers redundant brings to 1,100 the number of redundancies announced within the sector in the space of seven days.
The Canadian-owned aerospace giant confirmed 400 core jobs and 200 agency workers will go within its Belfast operation over the coming months. Last week, Thompson Aero Seating, announced plans to cut 500 jobs in Craigavon and Banbridge. The aircraft seat maker already shed around 400 jobs in March.
Both major employers blamed Covid-19’s devastating impact on the aviation sector.
The Unite union has warned that thousands of jobs will be lost unless a support package is brought forward soon for the aerospace sector.
The union’s regional secretary Jackie Pollock said the sector currently supports around 10,000 jobs in the north, and is worth around £1.9 billion a year for the economy.
“The industry is a pillar of our economy but its future hangs in the balance as order books have collapsed on the back of the Covid-19 shutdown,” he said.
Manufacturing NI chief executive Stephen Kelly also warned last night of the knock-on effect stating that each job at Bombardier supports three more elsewhere in the supply chain.
He called on the Executive to step in and support the manufacturing sector with a financial package.
Speaking yesterday evening, First Minister Arlene Foster said she recognised that the impact would be felt right across the supply chain, with smaller manufacturers particularly vulnerable. But she defended the Executive’s record in supporting the sector.
“I think it’s unfair to say we haven’t been engaged on this issue. We have all known that there are huge challenges in aviation right across the world.
“Flying is down by 90 per cent, so of course that is going to have an impact across the sector,” she said.
“What we need to do is work with Bombardier and the whole supply chain across Northern Ireland to try and build up the sector, invest in research and development, so that they can be there at the top of their game to move forward and to build for the future.”
Meanwhile West Tyrone MP Órfhlaith Begley said Allstate’s announcement yesterday had sparked fear and uncertainty within its north west operation.
It is understood the company, whose regional operation provides software development services and business solutions in support of its parent in the US, is looking at making significant cost savings across its 47,000 worldwide workforce.
In June last year, the Irish News revealed that Allstate was planning to open a new custom-built 850-seat office in Derry to boost its operations in the area and allow for expected staff expansion.
“This news creates great uncertainty and worry for Allstate workers and their families,” said Ms Begley.
“But there is hope that, given the nature of the Allstate operations here, they can be insulated from the worst of any cuts.”
