Union leader optimistic about North’s construction industry

Jul 9 2008 by Chris Knox, The Journal

THE hundreds of North East construction workers recently made redundant following a nationwide cull by housebuilders have “plenty of jobs to fall back on in the region”, according to a union leader.

The vote of confidence follows an announcement by York-based housebuilder Persimmon that it has been forced to shed 1,100 jobs nationwide and 60 in the North East as a result of the credit crunch.

A trading statement by the firm said that the first six months of the this year had been the “most challenging in recent history” and saw completions down 31%, resulting in a 34% reduction in sales to £1bn for the period.

It did say that it will be continuing building work on its 34 sites in the North East, where it still employs around 940 staff.

The news reflects a wider picture, with the UK’s biggest housebuilder Taylor Wimpey recently increasing its job loss target from 600 to 900 and Newcastle-based Barratt cutting 1,000 jobs.

However, John Scott at the Union of Construction, Allied Trades and Technicians is optimistic about the regional picture and believes that the axed workers will be able to find work quickly in the North East. He highlights the planned construction of the second Tyne Tunnel and the ongoing £170m extension to Eldon Square among a host of construction projects that are looking for experienced builders.

He also believes the Government’s £180m Building Schools for the Future programme will continue to create jobs in the region.

“Of course it is a concern that Persimmon and so many others have had to axe so many staff but the fact is that there is still a number of opportunities in the North East,” he said.