Union prays for new orders as JCB wields jobs axe again

UNION bosses are battling to save "as many jobs as possible" after JCB revealed it is to make almost 200 redundancies.

The digger giant held a staff briefing on Friday to announce up to 196 job losses across five of its nine UK sites.

The firm's world headquarters in Rocester is earmarked for 148 of the cuts, and around 25 positions are vulnerable at JCB Utility Products and JCB Landpower, in Leek Road, Cheadle.

JCB Cab Systems in Rugeley and JCB Transmissions in Wrexham will also be affected.

GMB shop steward Gordon Richardson admitted the latest round of redundancies – which will bring the total number of jobs shed by the company in the past 18 months to around 1,800 – was not totally unexpected.

But he maintained concessions made by staff – who worked a shorter week for more than six months in a bid to save jobs – had helped prevent earlier losses.

He said: "The construction industry isn't reviving as fast as people have predicted. We are hearing stories of recovery in Europe but in England it hasn't received the springboard we were promised.

"I do really believe (concessions) have kept people in jobs for longer periods of time, but men on the shop floor feel whatever we have done hasn't really helped. They are angry, not just shocked."

A 90-day consultation period with employees and unions has started at Rocester. The other sites will be the subject of a 45-day consultation.

Mr Richardson said: "There are rumours of orders in the pipeline and I hope these are real – but I'll be a lot happier when they are in the book.

"Hopefully, they will come through in the next 90 days and we can save as many jobs as possible. But unfortunately it seems more losses are inevitable."

The company also said that the first working week of January will be set aside to train shop floor staff.

A JCB spokesman said: "With no immediate prospect of an improvement in order levels, we must, regrettably, respond to the situation and reduce our manning levels in line with demand."

Last month, JCB – which now employs 4,000 in Staffordshire – announced a steep fall in profits for 2008 to £39 million, compared to £187 million the previous year, as revenue declined from £2.25 billion to £2 billion.

At the time, JCB chairman Sir Anthony Bamford suggested redundancies had helped keep the company in the black. He said: "After several years of growth, 2008 was very challenging for the construction equipment industry. JCB responded quickly to the downturn by taking difficult decisions, to ensure production remained aligned to demand. The ongoing cost reduction programme at JCB means the company is set to emerge from the downturn stronger than before."

Earlier this month, JCB chief executive Matthew Taylor quit after less than 18 months. He will be replaced by chief operating officer Alan Blake.