More than 450 employees at US-owned technology company Seagate are having their pay cut by 10 per cent as the company battles to cope with the global downturn, it was announced today.
Seagate told a mass meeting of workers at the Springtown plant in Derry that the pay cut was for all management, sales and professional employees worldwide.
About one-third of the 1,400 workers employed at the plant would be affected.
Senior management globally, vice-presidents and above, will take pay cuts of between 15 per cent and 25 per cent, said Seagate.
There had been fears of redundancies among workers, but the company said fewer than five people at the plant were expected to be affected by redundancies as the company makes approximately 2,950 job cuts worldwide.
Seagate said it “very much regrets having to take these actions”. But it added: “They are necessary to lower the company’s cost structure to align with the current macroeconomic business environment.”
The Unite trade union has expressed relief there were no major job losses.
Regional organiser Gareth Scott said: “We welcome the fact that there was no major announcement of job losses. However we and the workforce remain deeply concerned about the future for jobs as the company said they will keep it under review.”
The company stressed later the 10 per cent cut in pay was a temporary measure that would be reversed as soon as business conditions improved.
The workers in Derry are on a four-day week, and that is to remain.
PA