250 Job Losses at Sanmina Lisburn another blow for local economy
Sinn Fein Lagan Valley Assembly candidate Paul Butler has said that the loss of 250 jobs at Sanmina Electronics Company in Lisburn is another major blow for the local economy.
Cllr Butler said:
"I have been concerned over the last number of months that Sanmina SCI would pull out of Lisburn after revelations that the company was under investigation in America. Now these fears have become a reality with more job losses at the electronics plant. The US owned company shed 100 jobs in December and the future of the remaining workforce is now in jeopardy.
"The company is being investigated over possible accounting irregularities. It is my understanding that over 80 US corporations including Sanmina SCI, are under investigation internally, or by the Securities and Exchange Commission or the US Department of Justice, for possibly having backdated stock option grants.
"Sanmina SCI have admitted that errors in the way it accounted for stock options for nearly 10 years will cost the company more than $200 million, far more than the company earlier estimated. However, these accounting irregularities are not the only concern as Sanmina SCI has incurred heavy losses in recent years. In its last quarterly figures the company reported a net loss of $54.8 million on revenue of $2.7billion.
"The revelations about Sanmina SCI's problems could well be why the company have decided to relocate to Hungary were labour costs will be cheaper than in Ireland. These revelations go a long way to explaining why management at the Lisburn factory had been so reluctant to make any public statement about the December job losses.
"What is important now is that workers and trade union representatives are kept informed as to how best the remaining workforce will be supported financially. The company needs to make a clear statement and reassure the remaining workers that they will provide all workers with adequate compensation. Job losses are never good news and their impact is particularly bad for the workers concerned." ENDS