ULSTER Carpets in Portadown is planning to lay off 70 workers, about a quarter of its workforce, as the downturn in key sectors like hospitality and travel impacts its markets.
It follows a review of operations at the firm, and comes as the end is in sight to the government furlough scheme, which is feared may see dozens more firms initiating redundancy processes.
And the decision by family-owned firm has prompted Upper Bann MLA Dolores Kelly to reiterate her party the SDLP's calls for an extension of Covid-19 support schemes to protect workers and their families.
Ulster Carpets, founded in 1938 by George Walter Wilson, employs 300 people at its headquarters in Portadown, and has further offices in London, Paris, Germany, Dubai and across the USA.
In a statement it confirmed that, following a review of its operations, it has commenced a formal consultation period unions and has been in full communication with all employees.
"The business review, which covers all staff within the company and affects all parts of the group across the world, remains ongoing and we hope to fulfil the vast majority of potential redundancies through our voluntary process," the statement says.
Ulster Carpets, which remained operational throughout the coronavirus crisis, is dependent on providing floor coverings to the hospitality and cruise ship sectors, and the decimation in those particular sectors has hastened its decision to make redundancies.
And the company, which supplies Axminster and Wilton carpets to customers all over the world, said that while its retail business has recovered well, the onerous restrictions placed on international air travel would likely impact its key markets for the foreseeable future.
Kevin Savage, mayor of Armagh, Banbridge and Craigavon Council, described the announcement as “another devastating blow” to the regional economy, and as well as significant impact on families and local businesses, would have “far-reaching consequences” throughout the borough.
“This news reflects the impact the winding down of the government’s Coronavirus Job Retention Scheme is having on businesses, especially within sectors such as manufacturing, aerospace, retail, hospitality and tourism.”
Economy minister Diane Dodds, speaking to the Irish News at a jobs creation announcement at Tobermore, said: “France, Germany and other countries have extended their furlough scheme, recognising that the economy will need further support as we recover from the pandemic.
“I have consistently expressed a concern that, as furlough tails off, we could see a rise in unemployment, and fully support an extension to help employers keep people jobs."
