Jobs face the axe as slump bites deeper
KAREN McLAUCHLAN
ENGINEERING giant Cummins today confirmed more than 100 jobs losses at its Darlington plant but warned almost as many again could go as economic conditions worsened.
The news follows a survey yesterday that said British manufactures were experiencing their hardest times for 17 years as output fell for the fifth month in a row.
In July, Cummins said it was cutting around 100 jobs at its Darlington site.
The diesel engine manufacturer has now confirmed all 111 temporary employees will not have their contracts renewed and will leave the company by tomorrow.
But up to a further 86 full-time jobs could now also be hit as order books shrink.
Steven Nendick, Cummins’ European communications director, said: “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.”
He said that while the company was working to better understand the business forecast going into 2009 it had issued a second HR1 - which starts a 90-day consultation period - so it can react to any further business downturn. “Cummins will continue to make every effort to minimise the number of employees affected by this,” he added.
The loss of temporary staff will bring Cummins’ workforce down to around 900.
Mr Nendick said “a general downturn in the market” had prompted the company to look at further cutbacks.
Yesterday the Chartered Institute of Purchasing and Supply (CIPS) survey showed manufacturing firms slid deeper into recession last month as output, new orders and jobs plunged.
The downturn was most severe in the consumer goods sector, where output and new orders both fell at record rates.
The stuttering global economy also meant there was no relief nationally from exports, despite the recent weakness of the pound.
Carnage in financial markets and mounting evidence of the impact on the wider economy could prompt a cut in interest rates as early as next week, economists predicted.
Until recently, most believed policymakers would wait until November - when inflation is expected to peak at around 5% - before making a cut.
But an increasing number of experts think that the Bank’s Monetary Policy Committee will be forced to take action on Thursday.
