Workers fall victim as markets shrink in economic turmoil
Oct 3 2008 by Peter McCusker, The Journal
LOW-COST overseas producers and a fall in orders have been blamed for the planned closure of a County Durham fridge-making factory which employs 181 people.
The move coincides with the loss of construction jobs at a Gateshead company and a threat to more than 80 jobs at a Darlington engineering firm.
Parker Hannifin says it is consulting staff at its fridge plant in Crook. A spokesman said: “This announcement follows a long period of difficult trading in the refrigeration market, resulting in significant financial losses, and a previous major reduction in the number of employees.
“Strenuous efforts have been made to improve productivity and lower manufacturing costs.
“However, with the imminent closure of the location’s only remaining UK customer, coupled with a number of customers who have moved orders to competitors in lower-cost countries, there has been a substantial reduction in requirement for refrigeration products from Crook.
“Parker will be working with and seeking the co-operation of the workforce and their trade union to achieve the best possible outcome for the employees in these difficult circumstances.”
Amicus regional officer Dave Telford said: “It’s a devastating blow. We are holding talks with management on Monday where we will be pressing to see if some parts of the factory can be kept open.” Last July, Parker said it would cut 90 jobs there.
Gateshead company Pyeroy yesterday said it had cut construction jobs.
Hugh Pelham, managing director of the company, which employs 900 people, said: “Across the company, business is increasing on the back of multi-million-pound contracts in the rail, marine and power generation sectors. However, like many others operating in the construction sector, we are trying to weather the stormy times as the decline in housebuilding activity bites.
“Although we have been able to transfer some people to other parts of the business and secure work with other companies, we have regrettably had to lay off a small number of people in our decorative division.”
In Darlington, Cummins, the world’s largest independent maker of diesel engines, said it was cutting its staff of 900. A spokesman said: “At the beginning of July, Cummins announced that it was planning to release approximately 100 people in the fourth quarter of 2008 due to reduced engine demand. The company can now confirm that all 111 temporary employees will not have their contracts renewed and will leave the company today.
“Our initial plan was not to release any full-time staff. However, due to the current economic climate, this is a possibility we have to consider. Whilst we are working to better understand the business forecast going into 2009, we have issued a second HR1 [redundancy notice] for a maximum of 86 people that would enable us to react to any further business downturn.
“Cummins will continue to make every effort to minimise the number of employees affected by this.”
