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250 jobs at risk at call centre 250 jobs at risk at call centre
(about 1 hour later)
The call centre company Stream International has announced that 250 jobs are at risk due to the loss of a major contract.The call centre company Stream International has announced that 250 jobs are at risk due to the loss of a major contract.
Staff in Londonderry were briefed by management on Wednesday afternoon and it is understood the posts will be closed later this year.Staff in Londonderry were briefed by management on Wednesday afternoon and it is understood the posts will be closed later this year.
Stream provides support services for technology companies at two locations in the Waterside and Cityside areas.Stream provides support services for technology companies at two locations in the Waterside and Cityside areas.
A contract loss in February also led to some job losses.A contract loss in February also led to some job losses.
The company currently employs about 500 people in Derry.The company currently employs about 500 people in Derry.
Staff working on the contract that has been lost will be put on protective notice.Staff working on the contract that has been lost will be put on protective notice.
The company's managing director, Jeff Jennings, said these are "tough times for the call centre sector".The company's managing director, Jeff Jennings, said these are "tough times for the call centre sector".
"One of our contracts is moving. We're not closing the place down, we're staying in Derry and we're going to go after new business," he said."One of our contracts is moving. We're not closing the place down, we're staying in Derry and we're going to go after new business," he said.
"The commitment from the company is that they are going to stay in Derry, it's their UK location, we're not going to pull out of the UK."The commitment from the company is that they are going to stay in Derry, it's their UK location, we're not going to pull out of the UK.
"We've got clients visiting us in the next few weeks. Hopefully we can turn it around.""We've got clients visiting us in the next few weeks. Hopefully we can turn it around."
'Uncertainty''Uncertainty'
Following the meeting, workers outside the offices said they had been given the option of moving with the contract to Newcastle-upon-Tyne, but few were likely to take that option.Following the meeting, workers outside the offices said they had been given the option of moving with the contract to Newcastle-upon-Tyne, but few were likely to take that option.
"We've just been told somewhere between September and January, if there is no new business, they are going to start letting people go," said one employee."We've just been told somewhere between September and January, if there is no new business, they are going to start letting people go," said one employee.
SDLP MLA Pat Ramsey said people needed to focus on how jobs could be protected.SDLP MLA Pat Ramsey said people needed to focus on how jobs could be protected.
"There's going to be major job losses here, we could see up to 50% of the workforce going," he said."There's going to be major job losses here, we could see up to 50% of the workforce going," he said.
"We know from the staff that there is still uncertainty, there is still nervousness and apprehension as to what the future holds.""We know from the staff that there is still uncertainty, there is still nervousness and apprehension as to what the future holds."
Sinn Fein assembly member Martina Anderson said she was extremely concerned at the news.Sinn Fein assembly member Martina Anderson said she was extremely concerned at the news.
"Only months ago we were welcoming Stream's announcement of 300 additional jobs with the promise of further expansion," she said."Only months ago we were welcoming Stream's announcement of 300 additional jobs with the promise of further expansion," she said.
"We can only hope that today's announcement will not be as severe as reports would indicate.""We can only hope that today's announcement will not be as severe as reports would indicate."
Employment Minister Sir Reg Empey said his department would provide support to anyone who loses their jobs.
"This is a very upsetting blow to those affected and my thoughts are with them and their families," he said.
"Whilst we have had no formal notification of the job losses from the company, I understand that they are significant and will, no doubt, have a knock-on effect on the local economy.
"The North West has already been badly hit by this global recession and this is a further distressing development."