JCB jobs go by Christmas as firm slashes production

Wednesday, November 19, 2008, 11:10

AN EXTRA 60 workers at Cheadle's JCB factories will be out of a job before Christmas as a result of the latest wave of cuts.

The company announced last Thursday that it was shedding another 398 posts.

A total of 297 jobs will be axed on the shop floor while 101 positions will go in the offices.

Now the Post & Times can reveal 60 of the 398 jobs to be lost will be at the company's Compact Products and Earthmover sites on Leek Road.

It emerged last month that Compact Products had been worst affected by the first wave of JCB redundancies.

The combined workforce on the Harewood Estate will now fall below 900.

Ninety will also go at the company's world headquarters in Rocester and 60 at Heavy Products in Uttoxeter when a consultation period ends on December 13.

The remaining 188 jobs will be axed at other JCB factories at Rugeley, Foston and Wrexham.

The Rocester-based firm says it needs to reduce its UK production by 34 per cent and maintain those revised output levels into the first quarter of 2009.

It was revealed last month that JCB needed to cut its shop floor workforce at its UK factories by 510, but the figure was reduced by 332 after GMB union members voted by a two-thirds majority in favour of a four-day week.

The company had earlier already laid off 436 workers, and has put a freeze on pay for next year and axed the Christmas bonus.

JCB chief executive Matthew Taylor revealed the additional redundancies were necessary due to the extreme deterioration in business levels and confidence around the world, leading to reduced orders, particularly from previously buoyant markets including Russia, and Central and Eastern Europe.

He said further job cuts could not be ruled out if the economic situation deteriorated further in the coming months.

Mr Taylor added: "The level of business we are doing out in the markets right around the world has dropped very dramatically after the torrid financial times in September."

Mr Taylor said staff were "very worried" following last week's announcement.

When asked if there would be any more redundancies in the future, he replied: "Not at the current level of business.

"If it gets even worse than that, then, at the end of the day, we will have to take another hard look at that."

GMB union convener Gordon Richardson said: "It is like we are paddling against the tide of the global recession and each day it hits us more and more.

"These are very gloomy times and we are trying to keep all our members informed about what is happening."

But Cheadle MP Bill Cash insisted: "It is important to remember that JCB is one of the finest companies in Britain and I am certain that when this economic crisis is over it will come back with even greater strength."