Steelite goes to four-day week

POTTERY giant Steelite International is moving to a four-day week because of high costs and falling profits.

Shopfloor workers will only get paid for four days' work from December until at least April.

The four-day week comes as the firm's Christmas shutdown is extended from eight days to 15 and 15 office staff are axed.

Steelite managing director Kevin Oakes today warned 2009 will be "extremely difficult" for the Middleport firm.

Mr Oakes said: "With much regret we will move to short-time working from December 15. The current economic climate has hit all businesses extremely hard, not only in the UK but overseas as well.

"This was a difficult decision, but we feel the changes are necessary to ensure the company's future success.

"We have been in negotiations with the trade unions for some time to make sure decisions are effectively communicated, are fair and are the right response to very difficult trading conditions."

Steelite, which employs more than 600 people at its Orme Street plant, supplies tableware to hotels and restaurants across the world.

But it has been hit by spiralling energy and distribution costs and falling profits as leisure chains cut spending.

Steelite made pre-tax profits of £7.3 million last year – up 3.2 per cent on the previous year.

Mr Oakes added: "Steelite International continues to be a very successful company. We are still very profitable, but haven't hit the profitability we anticipated.

"This isn't about Steelite International, it's about the world economy.

"Looking at all the forecasts, there is no doubt 2009 is going to be an extremely difficult year.

"My job is to protect the business and protect the employees who remain, and that is exactly what I've done."

Garry Oakes, assistant general secretary at ceramic union Unity, said: "We have agreed this with the company as the best way to avoid any manufacturing redundancies at this moment in time.

"Trading conditions generally at the moment are dreadful."

If a Steelite employee earned £16,000 a year – an average wage for a pottery worker – they would lose £240 a month.

Steelite is moving to a four-day week just days after world-famous Stoke firm Spode collapsed into administration, with the loss of 40 jobs.

And more than 150 workers have signed up for voluntary redundancy after Barlaston-based Wedgwood announced job cuts.