Workers at Seagate Technology in Limavady say they have been offered a redundancy deal which would give staff up to six weeks of pay for every year of service when the plant closes in the middle of next year.
At a meeting with management this morning, staff were told they would get four weeks of pay per year of service, plus an additional two weeks, if production levels at the facility were maintained.
Negotiations began on the redundancy package for more than 900 employees this morning after management said high labour costs had made the plant uncompetitive.
Much of the work will be carried out at the company's new facility in Malaysia after the plant closes next year.
Northern Ireland First Minister Ian Paisley described the Seagate closure as a wake up call for the new power sharing executive.
He confirmed that he would travel to the US with Deputy First Minister Martin McGuinness before Christmas, in an effort to attract new investment to Northern Ireland and to create awareness of the more stable investment climate.
Mr McGuinness said the Limavady announcement would affect several counties, including Donegal, and he welcomed the announcement that 300 new jobs are to be created by Norbrook Technologies in Newry.
Speaking on RTÉ Radio's Morning Ireland, the Fine Gael TD for Donegal North East, Joe McHugh, said people were worried about the impact of the closure on the company's sister plant in Derry city.
Also on the programme, the DUP's Gregory Campbell raised the question of the £12m in grant aid given to Seagate by Invest Northern Ireland.
Mr Campbell said the other key issues were redundancy packages for the staff and the retraining of the workforce.
