THE loss of 500 jobs at Thompson Aero Seating could mark the start of a series of similar announcements by major employers in the north.
Manufacturing NI warned last night that the June 10 cut-off for the Government’s furlough scheme will trigger more significant job culls in the coming weeks.
A survey by the industry body revealed that half of manufacturers anticipate they will shed a third of their workforce.
“A combination of the closure of the furlough scheme on June 10 and our local employment laws means that it is likely many similar announcements will be made in the coming weeks,” said Stephen Kelly of Manufacturing NI.
The Chinese owners of Thompson Aero Seating yesterday blamed impact of Covid-19 on the global aviation industry as it announced plans to slash its staff by 40 per cent.
It said up 500 jobs will go at its sites in Craigavon and Banbridge where it employs a core staff of 1,200 people and 100 casual workers.
The company, which makes business-class seats for some of the world’s biggest airlines, was acquired by state-owned Aviation Industry Corporation of China (AVIC) in 2016.
The manufacturer has grown rapidly in recent years, expanding to around 1,600 workers. Last year it announced plans for a new 350,000 sq ft production facility in Craigavon.
In a statement, Thompson Aero said the redundancies, which will be rolled out in the coming months, will bring its headcount back down to 2018 levels.
“The global airline and aviation industries are experiencing extreme challenges as a result of Covid-19.”
The company said the “unprecedented” impact of coronavirus had significantly hit global demand for aircraft seating.
“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 said the company had already shed 430 jobs in late March, mostly agency staff.
It called on the Executive to intervene by urging the UK chancellor to extend the deadline for the furlough scheme.
Regional secretary Jackie Pollock said the Executive should also prepare to take equity stakes in leading companies.
Stephen Kelly also said the Executive must be prepared to play a role: “The manufacturing sector is resilient and many will find a way out of the current crisis, but they need the support of the Executive through financial intervention, smart and brave policy making and quick decisions to give them a fighting chance.”
