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Very sad news for the people of the area. Dole queue doubled at a stroke seemingly.
Heard Jeremy Campbell of the DUP on the radio this morning saying he'd raised the issue of recouperating grants given to Seagate and that there should be at least twelve million STG up for grabs. Proper order too.
Fingers crossed it'll go some way towards softening the landing and re-training people.
At least they have 6 months notice which may help looking for alternative work. UK statutory redundancy laws are very low so hopefully Seagate boost with voluntary amount.
I presume this a manufacturing plant but I don't know what they do there to comment on future of such jobs. Still a lot of unemployed people onto local jobs market. Would guess many people would never to move location...
There was a mention alright that Seagate intended offering a "generous" redundancy package. No details though ...none I heard anyway.Quote:
Originally Posted by pete
They make hard-drives in Limavady apparently. There's a Derry plant as well and Seagate swear blind that the Derry plant is safe.
They make the aluminium substrates for Seagate hard-drives.
They have moved production to plants in the Far-East.
Quote:
Originally Posted by pete
Any one know what the difference in the plants is?
Production with Aluminium might need to be close to supplies? Manufacturing jobs unless of very high value is probably all on the way to China sooner or later. I doubt even other Asian countries can compete on costs. Korea & Taiwan started off with low value manufacturing & have moved on to the high end where I am sure wage levels increased but a deliberately maintained low value Chinese currency does not help in this cases...
BTW ROI statutory redundancy is 2 weeks per year with minimum of one year service. I believe it maximum total is 104 weeks (2 years). About 10K tax free. Any one know the UK numbers..? I suspect it is lower. I read recently that in France that the State gives you 2/3 or 3/4 of your salary for 2 years after redundancy although I am sure some restrictions.
Production of substrates (Limavady) is a lot more low-tech than disk heads (Derry).Quote:
Originally Posted by pete
But unless Derry continues to re-invent itself and move up the value chain into more high-tech processes (as Intel in Leixlip has continued to do successfully) then it will only be a matter of time before it relocates offshore.
In a related point, can't believe how out of touch the NI Executive are, blathering on about the need for a deep base of manufacturing jobs in Northern Ireland and developing a strategy for delivery of same........err I think that particular boat has sailed long ago. Didn't they notice the fall from grace of the textile industry which went from No1 employer to zero in less than 20 years?!?!?!
Ireland, North or South, is not a viable location for manufacturing (except for very capital intensive, high skill, innovative-type manufacturing with large R&D elements).
As I said on here earlier in the year, Dell in Limerick is a ticking bomb....
I think Dell have diversified a bit into Sales & Support which will probably protect them for a while. I think the Dell manufacturing model is low stock levels which means they not stuck with over priced & out of date technology which will ensure not moved to Asian. Moving to eastern Europe a big threat though...Quote:
Originally Posted by OneRedArmy
It would not seem the smartest move for a young person to start a career in these industries. A bit different if someone has been there a long time may be difficult to change...
Unfortunately the reason people end up in lower skilled jobs is because they don't have a "career" and don't have higher level qualifications or transferable skills.Quote:
Originally Posted by pete
Dells Just-In-Time model means they only really need to locate close to suppliers, nothing stopping them also re-locating to a lower cost Central or Eastern European location too.
Just heard on Drivetime the Seagate employees are to be offered six weeks pay for every year with the company.
Yeah the locals have been saying that for a while. Not just Dell itself either but any number of associated support businesses -and not just hair-net jobs in those.Quote:
Originally Posted by OneRedArmy
BUT -for all that I do know that Dell trainers (that is -training personnel ...they haven't diversified into casual footwear) from the U.S. have been back and forth training no small amount of locals as trainers themselves who are in turn going on to train employees at the new plant in Lodz. Now it remains to be seen whether this is an exercise in getting turkeys to steward and marshall their own procession to the butchers but the story they're telling is they see Limerick as an important part of their set-up.
There are still some good reasons why a company would locate here (or remain here). For all the faults and under-resourcing of our education system we still have a relatively well educated English speaking work-force.
I agree though that the packing and assembly jobs are a thing of the past.
Absolutely agree with the above, but FDI in future will be because of the highly educated people and unique skills, not as a low cost destination driven by transfer pricing and other tax wheezes.Quote:
Originally Posted by Lionel Ritchie
We still need to make greater efforts to grow indigenous firms who are less likely to re-locate half way round the world at the drop of a hat.
Can't complain about that.Quote:
Originally Posted by Lionel Ritchie
Does not explain locating in Limerick though... ;)Quote:
Originally Posted by Lionel Ritchie
I worked in the Derry plant for almost 12 years, i was one of the first 48 employees, recording heads or the RHO division is a skilled division with up to 50% of the workforce with at least a higher national diploma (minimum). When Limavady was announced in 1995 we were really surprised, the media division is low skilled work apart from obviously small engineering departments etc. It was surprising over 10 years ago they came to Ireland. I am equally surprised it lasted so long. The Derry site will last as long as the world requires storage devices, whether it be laptops, computer consoles or any consumer product.Quote:
Originally Posted by OneRedArmy
They are getting 6 weeks pay for each years service, anyone in over 10 years will get over a years salary, enough time to get another job.