115 Arntz staff informed of potential closure

Bosses at the Pennyburn plant told workers they were entering a 90 day collective consultation on the possible closure of the company, following meetings between local management and the German parent company last week.

Despite Arntz's insistence that the factory may remain open if things turn around over the next three months, trade unionist Phillip Oakes of Unite said that this was the end of the firm's 42-year presence here.

"It basically is the end as far as I see it. I mean, the company have indicated that if within the 90 day period things turn around and the business turns around then they will review it and look at it," said Mr Oakes

"However, we don't believe that's an option at this point. The business just isn't there. From January and the first quarter this is usually the busy period for the company and unfortunately there are no options there at all."

Arntz currently employs 115 people at its plant at Pennyburn Pass. Staff have been informed of the decision to begin the consultation process and discussions with trade union representatives are ongoing.

Mr Oakes dismissed any notion that workers were shocked by the annoucement. He said that following a series of redundancies and workers being put on short term working over the past 14 months, staff saw this coming.

Mr Oakes said the priority now is to secure an enhanced redundancy package for the workers some of whom have been employed at the Pennyburn plant for decades.

Managing Director of Arntz Robert Moore blamed the economic downturn and the continuing reduction in order intake for the potential plant closure.

"I met last week with the Board of the parent company in Germany. The group as a whole has suffered from a substantial reduction in orders over the last year.

"Unfortunately this has a direct consequence for the Northern Ireland plant and closure is an option which although on the table has not been easily arrived at. We have today informed the staff of the situation and we will begin a formal consultation process with trade union representatives and employees.

"This is an unfortunate situation we had hoped to avoid, given the measures already taken across the Group throughout the past year.

"Arntz is committed to undertaking this process of consultation in a positive manner and we will meet all of our commitments to our employees.

"We have informed Invest NI of this decision and we will also work with all appropriate Government Departments and Agencies to assist people if they seek alternative employment or re training."

DUP Deputy Mayor, Maurice Devenney urged Arntz to provide workers losing their jobs with the best possible redundancy deal.

He said: "I would also like to see those workers get urgent help in terms of re-training to assist them in their efforts to find new jobs."

Ulster Unionist alderman, Mary Hamilton echoed those views: "For those staff facing 90 days' notice of redundancy, I can only offer my heartfelt sympathies. These are trying times, but I am glad that Arntz Belting has pledged to meet its commitments to employees.

"This is a further blow that Londonderry could well have done without. However, I would urge those suffering the consequences of this decision to seek out the appropriate support, as regards new employment or indeed re-training."

Foyle MP Mark Durkan said he deeply regretted the announcement. He said: "It comes as a great blow to workers and their families - as well as the wider community here in the North West.

"While the difficulties at Arntz have been apparent for some time with workers enduring terrible uncertainty, the news of lay-offs still hits with a sense of shock.

"I would encourage Arntz to be as positive and considerate as possible in dealing with workers' rights. I would also like to give my support to the trade union Unite in working to get the best deal possible for the Arntz employees."

Arntz is the latest in a series of manufacturing firms to vacate the Londonderry area. Thousands of jobs have haemorrhaged from the sector over the past decade.

High profile casualties have included Desmond's and Sons in 2004 and more recently Seagate in Limavady in 2007.

Research by the city regeneration firm Ilex shows that the service sector in Londonderry now accounts for over 84 per cent of total employment with the manufacturing and construction sector accounting for just 11 per cent and 5 per cent respectively.