Allstate refuses to address questions on job cuts

‘MASS redundancies’ have begun at Allstate in Strabane, a whistle-blower has said, re-igniting fears that one of the town’s biggest employers could be on the way out.

According to the individual who contacted this newspaper, “full teams and long term workers” have been told that they are losing their jobs with the “highest levels” within the company said to be shocked at the move.

However the individual also claims that Allstate have warned those affected not to go public with the news, citing the use of non-disclosure agreements (NDAs).

The whistle-blower said, “Some of those being let go have been working with the company with no issues for up to ten years and others have been hired within this same year.”

In November last year, the company announced that it would no longer be requiring the use of its Orchard Road premises.

At the time, the reason given was a change in working practices which reflected a ‘work from home’ model. In the past few months Allstate have been running a dedicated bus service to its Derry premises for a cadre of employees who prefer an office environment.

Following this move to a ‘work from home’ environment, West Tyrone MLA Daniel McCrossan expressed deep concerns for Allstate’s long-term future in Strabane, imploring the company in earlier in the yearJanuary to relocate to a smaller premises to at least maintain a base.

On learning of the new mass redundancy claims, Mr McCrossan said, “I have heard these rumours of redundancies from several sources. Any significant job losses will be devastating for Strabane.”

He added, “I flagged up my concerns about the long term impact for people in the town back in January and welcomed Allstate’s commitment that there would be no job losses. I sincerely hope they haven’t gone back on that commitment.”

The Chronicle contacted Allstate this week with a number of questions: Is it true that redundancies are underway in Strabane? How many redundancies have taken place so far? How many people are expected to be lose their jobs? And does this move, as feared by some, represent a retreat out of Strabane altogether?

In its statement, Allstate declined to answer any of the questions directly.

A spokesperson said, “Allstate has been transforming to give customers the best experience at the lowest price. To do that, we’re constantly advancing our digital capabilities through our people and partners, and making sure our teams are designed to best serve customers. When employees are impacted by our transformation, we help them find new opportunities at Allstate, with our partners, or we provide financial assistance and job placement support.”

Commenting on this statement, Daniel McCrossan reiterated that “any significant job losses at Allstate would be devastating for Strabane” and would represent “a very poor act of bad faith” by Allstate.

The MLA said he would be raising the issue with Allstate NI managing director Stephen McKeown when they meet to discuss the matter in the coming days.