Covid related downturn makes ‘lay-offs essential’

A decision to lay-off up to 500 workers at an aircraft seat manufacturer in Craigavon is “essential and unavoidable,” the company has said.
The Thompson Aero Seats factory near Portadown. Google image.The Thompson Aero Seats factory near Portadown. Google image.
The Thompson Aero Seats factory near Portadown. Google image.

Thompson Aero Seating said the “extreme challenges” brought about by the Covid-19 pandemic have “significantly impacted and reduced global demand for aircraft seating”.

The Chinese-owned company employes around 1,300 people across four sites in Northern Ireland.

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In a statement yesterday afternoon, a Thompson spokesperson said: “It is with great regret that the company has taken this essential step, an unavoidable decision which, given the circumstances, is absolutely necessary to secure the sustainable future of our business. Our primary focus is on liaising closely with and supporting our employees at this time.”

The Unite union has called for a change to the government’s furlough scheme in the hope that it could prevent the job losses.

Regional Secretary Jackie Pollock said the NI Executive should make representations to the Chancellor as the completion of a major order will prevent the company putting staff on furlough in time to beat the June 10 deadline.

He added: “Northern Ireland Aerospace plays a central role in our region’s economic success.

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“But the sector faces huge challenges going forward as a result of the Covid shutdown of the aviation sector leading to a collapse in new orders.

“The government of Northern Ireland cannot afford to sit back and watch – it must now intervene to protect vital industrial capacity, jobs and skills.”

Upper Bann MP Carla Lockhart said the redundancies were a “devastating blow” and added: “The government must look more strategically at the aerospace sector given the impact of Covid-19.

“We must ensure that families depending on this sector continue to have their livelihood. I know the economy minister is already aware of the pressures on this sector and has been making this argument in London.”

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Lord Mayor of Armagh, Banbridge and Craigavon, Kevin Savage said: “I have asked council officials to urgently engage with the company to discuss measures of support offered to employers and employees by the UK Government.

“Collectively we all need to work together to protect jobs and incomes during this challenging time.”

Dolores Kelly of the SDLP has also expressed her shock at the job losses.

“For these areas with significant deprivation, news of another economic blow and yet more job losses is seriously demoralising,” the Upper Bann MLA said.

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A spokeswoman for the Department for the Economy said: “This is very regrettable news and our thoughts are with the workers that may lose their jobs at this time. We recognise the decision to make people redundant is always a difficult one.”

She said the department’s careers service is available to support all those impacted by offering free professional and impartial careers information.

The spokeswoman added: “Contact details for the careers service and information about where to access help are all available at www.nidirect.gov.uk.

“Furloughing is part of the UK Coronavirus Job Retention Scheme administered by HMRC and the rules are a matter for the Chancellor of the Exchequer.”