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http://www.eveningtimes.co.uk/news/display.var.2510952.0.850_factory_jobs_axed.php
scotland :850 factory jobs axed
Hi-tech giant blames slump
HUNDREDS
of jobs are to be axed at computer giant Hewlett-Packard’s plant in
Renfrewshire.Staff will today be given the devastating news that around
850 jobs will be axed at the Erskine site, which employs 1300
people.Workers will be called to a meeting this afternoon, when bosses
will announce the cuts.Jobs in the manufacture of computer storage
devices and servers will be wound down next year and it’s believed
production will be shifted to the Czech Republic.Around 70 permanent
staff are to go, while more than 770 agency staff employed by Manpower
will bear the brunt of the cuts.The US firm – the world’s largest PC
and printer maker – made a £1.1billion profit in the last quarter,
despite a 17% drop in profit.It’s thought the job losses will be blamed
on the global financial crisis.The massive job cuts are likely to have
a major impact on the Renfrewshire economy, with local businesses
already struggling to survive in the recession.Jim Sheridan, Labour MP
for Paisley and Renfrewshire North, said Hewlett-Packard confirmed late
last night its plans to cut jobs.He said: “They will be closing at
Erskine. There has been speculation about this for the last two
months.”When I contacted the company they denied it was ever going to
happen, but it has obviously been planned for some time.”This is
absolute corporate greed. The workers have met every challenge
presented to them by the company.”Hewlett-Packard has made £5.1billion
profit. This is a company exploiting the current economic difficulties
and the cheap labour force in the Czech Republic.”Today the atmosphere at the Erskine site was subdued.
Some
staff remained tight-lipped and claimed to know nothing about the job
losses, while others said there had been rumours over the past few
days.One worker said: “I’ve heard rumours for the past couple of days
that something might be happening and that work may be going to Eastern
Europe, but I don’t think it’s in a section which affects me.”It will
be a nail-biting time for agency staff as they wait for the grim
news.One agency worker said: “I’ve been off for a couple of days so I
haven’t heard anything.”But with news that there will be job losses,
particularly in the agency sector, that looks like it’s me.”
Hewlett-Packard said a statement would be issued later today but refused to confirm the job cuts.A
company spokeswoman said: “Hewlett-Packard does not comment on rumour
or speculation.”We do regularly review the business and markets to
ensure they continue to offer the best possible value to our customers
and to ensure they are reliant to our gross plans and objectives.”If we
decide to make any changes or adjustments to our businesses following
this regular review we will always consult our employees, the
representatives and partner organisations first before informing any
external parties.”Hewlett-Packard is one of the major employers in
Renfrewshire – and also the West of Scotland.The Erskine site was
opened by Compaq in 1987 and at its peak the firm employed 2500
people.But the workforce has gradually been scaled back after
Hewlett-Packard took over Compaq in 2002.In February this year, 150
jobs were shed at the site when the manufacturing nightshift
stopped.Trish Godman, MSP for Renfrewshire West, said today: “I am very
concerned by this news. I will be seeking an urgent meeting with the
company.”The Scottish Govern-ment must also meet with management and
staff to plan intervention.”A Scottish Government spokesman said it was in contact with the company.
A
Renfrewshire Council spokesman said it would be getting in touch with
HP bosses to find out what was going on.He added: “We have not been
advised of any decision on the future of the Erskine plant.”We will be
seeking to have urgent discussions with the company, along with
Scottish Enterprise, to clarify the future of the plant.”If a closure
decision was announced that would be a serious blow to the local and
indeed national economy, particularly at a plant which has been at the
forefront of IT manufacturing in the area for 20 years.”The council,
along with other agencies, would do everything possible to help workers
facing unemployment get back into the workforce.”HP’s boss predicted success
IN
2002, hot on the heels of the company’s takeover of rivals Compaq, 650
jobs were cut at HP’s plant at Erskine.The move was part of a bid to
shed 6000 employees from the California-based corporation’s European
operation.The year before that 700 workers had been let go at the same
site.The work carried out at Erskine was moved to Hon Hai, a Taiwanese
company based in the Czech Republic.After that similar announcements
from Lexmark, Inventec and Sanmina-SCI resulted in more than 1600
redundancies in Scotland’s technology industry.In 2007
Hewlett-Packard’s UK managing director Steve Gill said: “We are
committed to Scotland and we believe that manufacturing has a future
here.”The standard-issue PC has become a commodity, and the realities
of the global marketplace mean that basic models will be produced in
the East.”But when it comes to specialist upgrades, personal
configuration and custom builds, the European market requires a
production base in close proximity.”Given its track-record, I see no
reason why Scotland can’t do well as a producer of high-tech goods and
services at the top end of the market.”Area will be hit by knock-on effect
CANDY
MUNRO, chief executive of Renfrewshire Chamber of Commerce warned the
potential job losses would affect the area badly.She said: “This would
not be good for the area and it would be dreadful to see any jobs
going, particularly on such a high scale.”We would be very sorry to see
this happen.”
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