Fears about 40 jobs at a Derry company have been raised with the Minister for Social Development.
The Derry News revealed last week that a £6m government contract has changed hands between two Derry companies.
Foyleview Builders has secured the contract for the ‘response maintenance service’ for the Housing Executive in the Derry City Council area.
The two-year contract, which the local firm will manage in conjunction with Limavady-based P&L Electrics, is worth an estimated £3m per year.
However, concern has been raised about the impact on the Derry company which had previously managed the contract.
Omega has carried out all the Housing Executive’s maintenance work in Derry since 2010.
This contract was worth around £2.4m a year.
However, that income will stop on Monday when responsibility for the contract passes to the Foyleview Builders/P&L Electrics consortium.
Current legal legislation known as the Transfer of Undertakings Regulations (TUPE) states that companies which secure government contracts are expected to take on workers who had previously been working on that contract.
SDLP Foyle MLA Pat Ramsey today claimed that up to 40 jobs at Omega could be at risk as TUPE arrangements for the transfer of workers from Omega to the new contractor have not yet been completed.
“I immediately raised this with the DSD Minister’s office yesterday and will be liaising with them throughout the day to ensure that a speedy and positive resolution to what could be a serious blow to those long standing jobs in the city.”
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