JCB workers told - cut hours or find a new job
JCB workers have been given a stark ultimatum by their bosses – cut your hours or risk hundreds more redundancies.
Staff are facing the crippling choice because of falling global revenues at the digger maker.
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JCB workers told - cut hours or find a new job
It comes just days after the company laid off 436 staff after a three-month consultation.
Company officials blamed the latest problems on the credit crunch hitting emerging economies like India and the Far East.
A spokesman said: "We have been sharing with our employees discussions we have been having with the GMB union about options such as short-time working and potential redundancies.
"But no decision has been taken on any options and I therefore cannot comment on any numbers."
JCB bosses have been briefing workers and the GMB union this week to warn them about the perilous state of the construction sector, which is one of the hardest hit by the credit crunch.
Employees at the firm's Staffordshire factories – including Rocester, Uttoxeter and Cheadle – say they face a vote between a collective reduction in their 39-hour week, thought to be JCB's preferred option, or more job losses.
It is not known when workers will have to decide their fate.
Nobody from the GMB union was available to comment yesterday, but workers say about 200 job losses are proposed if staff do not reduce their hours.
The Rocester-based manufacturer, which employs around 5,000 staff in Staffordshire, confirmed earlier this week that 213 compulsory redundancies and 223 voluntary redundancies had been made across its UK operations.
The JCB spokesman added: "Following five years of uninterrupted growth, demand for construction equipment has started to fall.
"It is also starting to fall in emerging markets like India and the Far East."
One worker told The Sentinel that staff were not keen to vote for a reduction in hours.
He said: "The general feeling is that voting to reduce our hours is a no-no.
"People can't afford to take the pay cut, but if staff don't back it, they could be voting themselves out of a job. Morale is very low."
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by Anon, Stoke
Saturday, October 18 2008, 10:32AM
“Quote (Sarah): "Lets hope that this is across the board with the salaried staff as well, especially managers. Its the lads on the shop floor that keep them in a job in the first place with their hard work getting the diggers built in the first place " - Slightly narrow minded. I think you'll find it's the Managers, engineers and designers who have something to do with creating jobs in the first place! (Most of which don't get paid for their overtime!)”
by Jim, Stoke on Trent
Thursday, October 16 2008, 10:37PM
“Let me just say that it will always be the shop floor that get hit, the top brass will never take a cut in anything. This can not be a suprise to anyone as they have always been the same.”
by Julie, Newcastle
Thursday, October 16 2008, 9:44PM
“Excellent point regarding the helicopters. Whats wrong with the train. It just seems that no thought has gone into how they can cut the outgoings. There is plenty of things they can cut back on without losing the workforce.”
by SJS, S-O-T
Thursday, October 16 2008, 9:30PM
“Let me explain something, the cut in hours will only affect the people it needs to. If your job on JCB needs more hours you will be able to work them. In other words you can have 1 man on 34 hours working next to a man on 46 hours. How do you think the guys who will be on the lesser hour will feel?
I know for certain that my husband will be on the least hours and while we struggle to buy ANY christmas presents for our children, other luckier workers will be spending £££ on luxuries and wasting much needed cash.
The staff will not be hit as explained in a meeting as they are on minimum personnel. So the shop floor are taking all the brunt.
I find this disgusting when the MD's will be driving home in there £60,000+ Mercedes, while my husband will be worrying if he can afford the petrol just to get in work.
Who knows how the vote will unfold but it will be bad news either way.”
by bri, Stoke-on-trent
Thursday, October 16 2008, 9:08PM
“The amount people think there goin to loose should b based on 39 hrs not all the overtime they bin gettin,cause therewill b no more overtime,they will basically loose the half day ,fri ,short time was always on the cards in the current credit and market crisis, most sensible,and more likely to see it through will follow suit .,you have to b decisive and act fast..but the company should make this desision, not the workers,do we tell the goverment what to do !”
by GMB MEMBER, STOKE-ON-TRENT
Thursday, October 16 2008, 8:19PM
“GMB MEMBERS UPDATE
following the recent business reviews in which the company has outlined the dire affect that the economic downturn is having,we are in the possition where JCB has informed us of the need to reduce direct labour costs by a further average of 19% which equates to 500 redundancies across the group JCB uk.
our alternative option is to agree to reduce our working week from 39 to 34 hours and open up the voluntary redundancy avenue ,this will generate a 12.8% labour saving the shortfall if vr's are not forthcoming will be made up by compulsory redundancies,this number is 178 of the 500 jobs.
we as a responsible trade union are suggesting, because of our fundamental aim to preserve jobs,to share the reduction in hours across the board up until further notice (6 months minimum) and minimise loss of labour throughout the group wherever possible.the GMB are recommending support of this option.
there will be a ballot next week where our members can vote on this option.
THIS WILL APPEAR ON NOTICE BOARDS TOMMORROW AT JCB FACTORIES”
by wendy, stoke
Thursday, October 16 2008, 8:03PM
“and speaking of the Talkback, isnt it supposed to be information on the company and its progress/problems, i for one am a rather miffed at seeing how many millions they have spent/invested in factories in India, usa, ect! yet our hardworking local lads are now facing a bleak time ahead?”
by keith, s-o-t
Thursday, October 16 2008, 8:02PM
“we all feel for the JCB workers but if the plant isnt selling then there s not a lot of point in producing it is there.I feel the workers will vote for a cut in hours if it comes to the crunch, im sure they would not put their mates out of a job.I dont think the Bamfords got to be multi millionaires by paying wages to people who are not producing so would expect the managers and the like to be looking over their shoulders.I really hope things improve but i feel we are all in for a tough time and all we can do is stick together through the troubles ahead.”
by kjon, s-o-t
Thursday, October 16 2008, 7:55PM
“though we all feel for the JCB workers at the present time, if the plant is not selling they cant keep producing, its not rocket science.
I feel confident that if it comes to the crunch the workers will take a pay cut rather than see their mates out of a job, and i wouldnt worry to much about the managers and above, Bamfords didnt become multi millionaires by paying wages to people who are not productive, they will feel the pinch to , dont you worry about that.”
by dave, stoke-on-trent
Thursday, October 16 2008, 7:41PM
“what has annoyed a lot of people is that the managment have passed the decision on to the workers with little information coming from the union. Everyones situation is different and therefore some heated discussions are occuring on the shopfloor. The management haven't helped by not making a firm decision on what should happen. These are difficult times not just for jcb but everyone.”