JCB tells workers to stay at home for an extra week
ALMOST half of JCB's remaining Staffordshire workforce have been told to stay at home for an extra week as the recession continues to hit sales.
The Rocester-based digger giant was already closing for its autumn shutdown this week.
But 1,600 of its workers are having to take next week off as well, because there are not enough orders.
The extended shutdown affects production workers at the World Headquarters in Rocester, JCB Earthmovers and JCB Landpower in Cheadle, and JCB Cab Systems in Rugeley.
Staff will still be paid for their extra week off, following a union ballot, but will have to repay the 39 hours by working without remuneration for an hour a week for 39 weeks.
Staff at JCB Compact Products, in Cheadle, and JCB Heavy Products, in Uttoxeter, are not affected.
A JCB spokesman said: "JCB is extending its annual autumn shutdown by a week at some of its UK manufacturing plants to help ensure production is aligned to demand for the remainder of 2009.
"The extension, which affects shop-floor employees and production-related staff, has been the subject of full consultation with the GMB union.
"While many commentators are reporting positive signals, we are not seeing any indications of an upturn, although the rate of decline in the construction equipment sector over the past 12 months has slowed.
"We are hopeful we may have found the bottom, but are mindful the recovery will be a slow process."
JCB unveiled record profits for 2007, up 25 per cent to £187 million.
But the recession has hit building work across the world and potential customers are struggling to find banks willing to lend money for diggers.
JCB's figures for 2008 have not yet been filed, but are due before the end of October.
Gordon Richardson, pictured, GMB convener at JCB, said members feared job losses if they had not approved the extended shutdown scheme.
Mr Richardson said: "We had a choice of two bad options – either accept the proposals or reject them."
He added: "What are the implications of rejection? We certainly didn't want to go down that route."
Dave Sargeant, treasurer of Cheadle Business Group, said: "I know it is hard but this is surely better than a further round of redundancies.
"The company has needed to make some tough decisions but such calls will hopefully safeguard jobs for the future."
One JCB worker said: "It's all about self-financing – they pay us and then we're expected to pay them back. The company is thumbing its nose at us."







Comments