Raytheon pursued for cash payback

The revelation comes after documents released under the Freedom of Information Action showed that Invest NI tried desperately to stop the weapons company closing its plant at Springtown.

The documents show that Invest NI wanted to clawback grant assistance given to Raytheon's Northern Ireland Systems and Software Centre (NISC) as the arms giant moved to shut down its Derry operation.

According to Invest NI, Raytheon established a presence in Londonderry with an initial target of 94 jobs, but employment peaked in 2001/2002 with a workforce of 76.

The documents include an internal communication in February 2009, showing that 24 positions at Raytheon were under threat at that stage and that a consultation process had begun. A year later, only "8/9" staff remained.

As it emerged that the 24 positions were at risk, internal communications within Invest NI show that a clawback had previously been "parked", because "we did not wish to add to the negative perception of NISC by Raytheon's GB and N American management teams particularly given the ongoing and unwelcome events at the company caused by the 'Anti-War Coalition' demonstrators."

It said that Invest NI staff believed that a clawback invoice combined with the ongoing protests "would we believed have precipitated an earlier reduction in force or closure of the facility by Raytheon".

But it added: "However, having tried everything else to date and given the announcement to enter consultation I believe that it may now be prudent to table and push the threat of clawback to try to influence Raytheon management to reduce the number of potential job losses that may be actioned at NISC. We would seek to reaffirm the liability and secure an agreement to earn-out the obligation by encouraging Raytheon to retain what we deem to be a critical mass at NISC; one that we could build on in the future when the market turns upwards - for example we could use our R&D programme to secure new projects and growth at some future point.

"During the course of conversations with Raytheon management I have explored and tested the strength of their resolve to reduce the workforce by the quantum outlined above and am satisfied that there is a clear and present threat to all 24 posts."

An email to Raytheon, dated three days later, says: "...our view is that we would always prefer if possible to preserve jobs at Raytheon rather than have monies repaid...To this end we have entered into agreements with companies similar to yourselves whereby the repayment obligations is 'earned out' by maintaining employment at a prescribed minimum level rather than repaid."

The amount that Raytheon might have been expected to repay has been blacked out on the documents released under the FoI Act.

Having decided last year not to renew its lease at the Ulster Science and Technology Park in Derry when it expired in late January 2010, Raytheon approached Invest NI asking for help to find alternative premises "in both the North West region and within a suitable travel to work distance within Northern Ireland".

However following a review of business staff were put on Notice of Risk of Redundancy in January of this year, according to the documents.

In view of staff loyalty, Raytheon offered the eight or nine remaining workers a number of options, including a 'work from home' option to keep the remaining posts in Northern Ireland. Alternatively staff could accept redundancy on enhanced terms and conditions, or redeployment to other Raytheon sites in the UK.

An email dated January 19, 2010, said that, if the facility in Londonderry were to be closed, Invest NI would seek a clawback following the consultation period.

An Invest NI spokeswoman told the Sentinel yesterday: "I can confirm that Invest NI has decided to seek clawback, and that the matter is being pursued."