Brown pledges to help struggling job seekers
Jan 13 2009 by Iain Laing, The Journal
THOUSANDS more job cuts were announced yesterday as Gordon Brown announced plans to help those struggling to find work in the economic downturn.
Gordon Brown pledged that people thrown out of work would not be “abandoned” by the Government and unveiled measures including a so-called “golden hello” of £2,500 for firms recruiting people unemployed for more than six months, extra apprenticeships and “intensive” support aimed at helping up to 500,000 people over the next two years.
His promises were made as troubled manufacturers and retailers added to the grim litany of redundancies, administrations and receiverships as the credit crunch hits spending worldwide.
Machinery giant JCB is to axe almost 700 jobs because of the lack of credit available from banks coupled with continuing low confidence. Several sites will be hit by the cuts, including plants in Staffordshire, Derbyshire and Wrexham in North Wales.
Workers at the company voted to reduce their hours last year in a bid to save jobs, a move which the firm said has protected over 300 employees from the threat of redundancy.
The future of 850 staff at furniture retailer Land of Leather, which has sites in the MetroCentre in Gateshead, Darlington Retail Park and Stockton were in doubt after the firm called in administrators.
The Kent-based firm was forced to appoint Deloitte after efforts to secure additional funding and sell the business failed.
Land of Leather, which has 109 stores, has been crippled by a slump in demand for “big-ticket” goods as consumers come under pressure and house prices tumble. Its stock was suspended at less than 3p yesterday – valuing the entire company at just £1.06m. Deloitte joint administrator and partner Lee Manning said stores would continue to trade as normal while a buyer is sought.
Administrators of china and crystal maker Waterford Wedgwood said yesterday that 367 of its 1,868 staff have lost their jobs at the company’s site in Barlaston, Staffordshire, but it was still in talks to sell the business.
About 875 jobs are at risk at distribution company Wincanton after it confirmed yesterday that two of its depots may close in the spring. Wincanton said the sites in Gloucester and Trafford Park, Manchester, are “likely” to close after the part sale of its chilled foods distribution arm.
The company announced in November that it was selling a majority stake in this business to rival Culina and said it was exploring ways to avoid the closure of the two sites.
And Swedish engineering firm Alfa Laval has said it is going to cut 1,000 jobs worldwide as demand for its products and services was falling, particularly in Eastern Europe and Asia, because of the economic downturn.
The company, which employs about 12,000 people, said that 300 of the positions being cut were in Sweden. Alfa Laval said the job cuts would save the company £33m annually.
A car dealership with an outlet on Teesside and a £62m a year turnover has appointed receivers after being hit by a fall in sales, it was announced yesterday.
DeVries, employs 130 people. It was founded in 1991 and runs five Honda dealerships in Hull, York, Scarborough, Northallerton and Stockton.
PAGE TWO: Yesterday's job cuts in detail.
