Jobs blow for Pickering (From Gazette & Herald)

Jobs blow for Pickering

MORE than 150 people are to lose their jobs after a North Yorkshire firm announced it is to slash more than half its workforce.

Bosses at McKechnie Vehicle Components, in Pickering, are blaming the cuts on the strength of the pound against the euro and the loss of a major contract with car manufacturer Volkswagen.

The job cuts, which are set to take place following a 90-day consultation period with staff, have been described as a major blow by Ryedale leaders.

McKechnie's group company secretary Ross McDonald said the Pickering plant, which produces plastic moulded components for motor cars, has been struggling for some time.

"A reduction in the amount of cars being produced in the UK has meant we are increasingly having to compete in the European market," he said.

"Unfortunately the pound to Euro exchange rate is not favouring British firms and as a result the firm has been struggling to compete on price with other firms in Europe.

"We have also recently lost a contract with VW which has made the situation worse. The contract was awarded to us but then VW turned around and started advertising on the internet and we lost out."

Bosses are hoping to reduce the number of forced cuts by offering voluntary redundancy and retirement packages and offering some staff other jobs within the company.

"The cuts will not take place in any particular part of the factory - they will affect all sections," added Mr McDonald.

"We are hoping that after the 90-day consultation some people will take up redundancy and in some cases retirement.

"Some of the affected workforce may be able to be re-deployed to our factory in Stamford Bridge.

"Unfortunately this will not be the case for all the workforce and we will have to make redundancies. The cuts are set to happen in the second week in May."

In a bid to prevent future job cuts, bosses are planning to change the type of contract work in which the Pickering factory is involved.

"We will be looking at using the Pickering plant for plastic moulding work not related to the car industry," said Mr McDonald.

Ryedale MP John Greenway said the cuts were a savage blow to Pickering and the surrounding area.

"This is devastating news for those involved and those living in the surrounding area," he said.

Pickering Mayor Coun Bill McCall described the job cuts as a major blow for the town.

"It is very sad news and it will be terrible for those involved," he said.

Updated: 16:25 Thursday, February 15, 2001