Schivo NI, formerly Maydown Precision Engineering, enters administration; latest body blow to North West industrial base

white-out-of-red-fullUnion asks whether work conducted in Derry has been outsourced by incoming management in a cynical ‘asset-stripping’ manoeuvre

NI Executive parties must now reconsider their refusal to bring forward industrial strategy for balanced regional growth

January 6th: Unite Regional Officer, Philip Oakes, responded to the news that Schivo NI, formerly Maydown Precision Engineering, is to enter administration:

“We are very deeply concerned about this news which has come out of nowhere. Workers on last night’s shift were told not to come back to work today.

“Employment at the former Maydown Precision Engineering site in Derry has fallen to eighty-two over the last few years. Unite has repeatedly warned about the risk to these jobs following attempts by Schivo to de-recognise the union when they acquired the company eighteen months ago. Local political leaders told us that they would not publicly intervene as they had been provided assurances by the new management over long-term employment. Sadly, we now see the worth of those promises.

“This decision is the latest body blow to the industrial base of the North West. It also reinforces the need for both NI Executive parties to reconsider their opposition to an industrial strategy necessary to safeguard jobs in this vital sector and to secure balanced regional development.

“Unite will seek clarity on whether the work previously done at the Derry site will now transfer to the Schivo (Ireland) site in Waterford. We would be very concerned if this turns out to be another case like Chain Reaction Cycles where large numbers of workers were made redundant after an external acquisition resulted in work being transferred elsewhere. Legislation is needed to protect Northern Ireland employees – it is simply too easy to make workers redundant here.

“In the coming days, Unite will engage with the workforce to discuss our next steps. Our priority is to secure the best possible outcome for our members”, Mr Oakes concluded.

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