Toshiba relocate factory to poland...

neas

Plymouth company axes 270 city jobs

Friday, April 24, 2009, 11:39
52 readers have commented on this story.
Click here to read their views.

ELECTRONICS giant Toshiba is to axe 270 jobs at its Plymouth factory in a move that could put a “catastrophic” £80million dent in the city’s economy.
Many staff at the Ernesettle factory were said to be in tears and one woman reportedly collapsed in the car park following the shock news, which brings to an end 28 years of manufacturing in the city.
Toshiba bosses stressed the plant would not close altogether, but just 50 workers will be retained as the firm concentrates production in Poland.
Business leaders described the news as “a catastrophe” for the city, while one expert economist said a further 100 Plymouth jobs were now at risk due to the knock-on effect of so many redundancies. The company employs 321 people at the site, most of them working directly on TV production – all of which is to cease.
A 30-day statutory redundancy consultation will begin on Monday, but staff have told The Herald it was inevitable that 270 of them would be looking for new jobs come the end of July.


Those employees kept on will provide manufacturing and engineering expertise to the Polish factory, as well as handling the refurbishment of returned products.
Andy Bass, managing director of Toshiba Information Systems (UK) Ltd, said the company “deeply regrets” the job losses. He said: “We have 28 years of history with Plymouth, and are indebted both to the people who have worked with us over those years, and to the wider community. Toshiba has to keep its global manufacturing strategy under constant review in order to compete in a market which has been transformed in recent years by aggressive, price-driven competition.
“Two years ago we invested in a major LCD TV factory in Poland, supplying European products in tandem with the Plymouth factory. With the rapidly-changing global market, and with the unprecedented economic pressures we face, it makes strategic sense to centralise production management under one roof.”
The company said the Toshiba Corporation headquarters, in Japan, had decided to centralise European TV production at its factory in Kobierzyce, Poland, as part of a drive to save money.
Toshiba has now begun a consultation process with trade union and staff representatives at the factory.
Dr Steven Brand, senior lecturer in economics at the University of Plymouth, said the job cuts would automatically wipe one per cent from Plymouth’s economy – around £50million.
But the knock-on effects could shave another £30million from the local economy as those laid off reduce their spending across the board. He said the move could end up costing the city £80million. Dr Brand added: “These are some of the highest value-added manufacturing jobs in Plymouth.
“It’s a personal tragedy for these 270 people, but for the city’s economy it has wider implications. Plymouth is particularly vulnerable because of its peripheral location – jobs down here are really precious. It is a big blow.”
Dr Brand also said Plymouth could find itself in a “very serious economic situation” if the job cuts feared at Devonport happened.
“The university and the hospital are going to keep Plymouth going to some extent,” he added.
Tim Jones, chairman of the Devon and Cornwall Business Council, said the job losses would be a “body blow” and a “pivotal moment” for the city.
“The ripple effect could be another 100 jobs,” he said. “That’s speculation, but there are a lot of companies in the supply chain – the probability is there will be more casualties than just Toshiba itself.”
But he said it was no good hoping public funds could be used to plug the gap left by the electronics firm.
“The cupboard is bare in Europe and Whitehall,” he said. “We will have to do this ourselves – we won’t find the cavalry coming over the hill.”
He said this would mean a “DIY solution”, which could include planning assistance for firms or the university helping with innovative ideas.
Charles Howeson, chairman of the Plymouth Area Business Council, called Toshiba’s decision “catastrophic news”.
“This is further evidence of the recession pain to come,” he said.
“We in Plymouth must start to think about a co-ordinated task force approach to this crisis.”
He said such a ‘task force’ was already needed to deal with potential future downscaling of the naval base.
“It may well need to press the Government for exceptional financial help,” he said.
Mike Leece, chairman of Plymouth Chamber of Commerce, said: “It’s very disappointing news. We can’t afford to lose quality jobs at any time.”
He said the city should in future concentrate on industries which would not be vulnerable to the lure of cheap labour elsewhere – particularly in the creative, medical and marine science sectors.
Meanwhile, staff at Toshiba and their families were today coming to terms with the company’s announcement.
They were called into the factory restaurant yesterday morning and told the grim news.
One worker told The Herald staff had recently been reassured that jobs were safe and said it was ironic production was shifting to Poland – when the Ernesettle plant had been using Polish migrant workers.
“I will join the rest of the people down the job queue,” he said.
Another “shocked” employee of 10 years said: “People were breaking down crying left, right and centre and one woman collapsed in the car park.
“This came right out of nowhere. I’ve now got to worry about what to do next – I’m already selling my house so this has come at the worst time.”
Terry Keefe, the Unite Union officer for Plymouth, described it as “awful news”.
He said: “It’s a bolt out of the blue and we’re just completely stunned by it.
“The staff are devastated and it’ll take a while for it to sink in for them. We’re looking at the business case to see if it all stacks up but it’s very sad.”
Gary Streeter, MP for South West Devon, called on the Government to give the manufacturing sector more help, describing the job cuts as “sickening” news. He said: “This demonstrates the reality of the economic situation we find ourselves in.
“There were no special announcements about this sector in the budget and the problem is we can’t see any upturn – the Government has got to get the economy right. My thoughts are with the 270 people and their families – it’s a body blow for them.”
Alison Seabeck, MP for Plymouth Devonport, added: “This news comes as quite a shock given the length of time Toshiba has had a base in Plymouth. Toshiba’s decision is a sign of the difficult financial times we are facing. The forecasts suggest that the employment situation is likely to get worse before it gets better.”
See Monday’s Herald for more reaction from devastated workers. If your job is at risk, contact The Herald this weekend on 765529.

http://www.thisisplymouth.co.uk/news/Plymouth-company-axes-270-city-jobs/article-934571-detail/article.html


Green shots anyone? And theres people in my local town still deluding themselves... ALl the main employers here are reducing costs/staff... and people re still in cuckoo land.

We have had wrigleys doing the same, Rittal and Xfab..... and i hear another aircraft part manufacturer is going through a redundancy programme too...

Great Britain, once upon a time it was Great for a reason.. now the name is just an echo.

Graham_Devon

Was only being told it was rubbish that companies relocate from the UK just yesterday on here

neas

To quote south park. ' They took ourrrr juuurrbbs!!'

fc123

Good for Poland though. They've had a hard 2 decades (minimum) and many of their population with the energy and 'a get up and go' mentality, got up and left.

He said the city should in future concentrate on industries which would not be vulnerable to the lure of cheap labour elsewhere – particularly in the creative, medical and marine science sectors.

I wonder which industries he had in mind??? I am struggling to think of any.

neas

its funny re-reading the article its quite clear, that the design and tech support/repair capability has been kept at the site... the core of the business.

The no brains, no skill required manufacturing has been moved to poland, which makes sense... Anyone can be trained to put together step by step a tv.

1984ReturnsForReal_2

fc123 wrote: »

Good for Poland though. They've had a hard 2 decades (minimum) and many of their population with the energy and 'a get up and go' mentality, got up and left.



I wonder which industries he had in mind??? I am struggling to think of any.

Good for Toshiba.

Products built for less & increased margins.

:whistle:

1984ReturnsForReal_2

neas wrote: »

its funny re-reading the article its quite clear, that the design and tech support/repair capability has been kept at the site... the core of the business.

The no brains, no skill required manufacturing has been moved to poland, which makes sense... Anyone can be trained to put together step by step a tv.

Oh, thats OK then.


All the minions can work in McDonalds & Tesco to service you.

:A

neas

No.. most likely just join the dole queue or encourage crime rates etc. Plymouth will get to be an interesting city.

Rochdale_Pioneers

Graham_Devon wrote: »

Was only being told it was rubbish that companies relocate from the UK just yesterday on here

...specifically because of the 50p tax band. Has Toshiba relocated its TV bolting together business because of the 50p tax band? No? Stop spinning then!

vivatifosi

neas wrote: »

We have had wrigleys doing the same, Rittal and Xfab..... and i hear another aircraft part manufacturer is going through a redundancy programme too...

Great Britain, once upon a time it was Great for a reason.. now the name is just an echo.

Interesting selection of companies there neas. You've got Wrigleys (America), Rittal I believe is German, Xfab I don't know but the board sounds German and Toshiba is Japanese. In a global economy if they can do it overseas cheaper/better without affecting market share then they will. Sad, but true. If we think our manufacturing base is depleted, our British parented manufacturing base is even smaller.

neas

Wrigleys is now american yeah... it was uk up till they were bought by mars... then they do pants lol....


Originally 5-6 companies were enticed down to plymouth... by uk giving them grants/tax breaks... this was to regenerate the south west.

Main pnes were Britis Aerospace (which is now gone/sold and very small compared to what is was), Becton Dickinson (still there atm), Toshiba, Wrigleys and another company i cant remember now.

Seems itws dminishing... from this area at least.