More gloom as firm sheds jobs

Oct 9 2008

The credit crunch took a bigger bite out of Cannock’s economy this week, with news that ThyssenKrupp, the area’s biggest employer, is set to axe jobs.

It’s another daunting sign that the ongoing national financial problems are hitting our area hard - just weeks after The Post revealed a ruck of town centre shops have been forced to close their doors for good.

The Wolverhampton Road firm, which currently employs around 900 workers, is looking for redundancies on a voluntary basis.

Sue Boulton, Group HR Manager for the international firm, which supplies parts for the automotive industry, said: “Like all automotive suppliers, we have seen significant reductions in volumes and forecasts from most of our customers in recent weeks.

“To deal with those reductions, we have announced a redundancy programme - but on a voluntary basis only.

“The future is uncertain, but, with our broad customer base and with sound financial management, we should cope with the difficult months ahead.

“It’s a sign of the times, sadly.

“In the summer, we had 60 temporary workers, and they unfortunately all had to go.

“It is not a substantial number of employees at the moment. We are not looking at 10 per cent, or even five per cent of the existing workforce.”

Back in June, rumours were rife that jobs were set to go.

But then, staff were able to reassure workers that there were no plans to shed full-time staff after 50 part-time workers were temporarily laid off.

Sue added that, fortunately, the company has a large client base, and the move is not expected to be followed by more redundancies.

One employee, who asked not to be named, said: “It’s a sign of the times, but that doesn’t make it any easier.

“We’ve got families to feed, and houses to keep.

“What worries us is what if they don’t get enough voluntary redundancies? What will happen then?”

Simon Tulitt, divisional director of Southern Staffordshire Chamber of Trade and Commerce, which represents 900 businesses across the region, said this week: “There has been a recent rise in unemployment and our businesses are telling us that all the indicators are that unemployment is going to rise.

“Some companies face uncertainty in the banking crisis, banks aren’t lending money and companies are struggling.

“A lot of companies are keeping their skilled workers. It is the unskilled workers who are the first to go. Many employers are expecting to lay people off and the most vulnerable are the low earners and unskilled workers which will have an impact on our most deprived wards.

“We want the Government to move quickly and act. Confidence needs to be restored.”