130 jobs hanging in the balance at engine maker

Jan 9 2009 By Evening Gazette

AROUND 130 jobs could go at engine maker Cummins as a result of the global downturn in construction and transport.

The Darlington-based company today confirmed it was in 90-day talks with unions following a drop in demand.

The news comes after the company had to shed 100 full-time roles and 111 temporary jobs before Christmas as economic conditions worsened.

Cummins said the consultation period would give it time to discuss "a range of options", which include reduced working hours instead of redundancy.

Workers have already taken a reduction in shift premiums and have embarked on the first two of four "down days", which have been introduced to protect production jobs.

A spokesperson for Cummins said redundancy would be a last resort.

"Nobody knows what is going to happen with the economy and the 90-day consultation period gives us options.

"To let people go and then have to re-employ them is not an ideal situation.

"The recent redundancies are part of a wider cost-saving measure introduced by the company and we are looking at other areas in which we can save money, such as cutting down on travel."

He said the company was producing 140 engines per day - well short of the capacity of 200 per day - and had been badly affected by a slump in demand in construction and transport-related industries.

"People are not buying cars and therefore there is less demand for our engines," he said.

"We are increasing the scope of our supply from the Darlington site and our exhaust factory means we can produce exhaust components, not just engines."

The firm’s Darlington plant supplies engines to customers in the automotive, industrial, marine, power generation, mining and construction sectors in countries across the world.