Following yesterday’s news that multi-national engineering company Gurit, refused to deny or confirm job losses, they have today held a press conference at which the company have confirmed losses of 80-90 staff on the Isle of Wight.
They explain the job losses are a result of the unexpected end of a contract for manually manufactured automotive parts.
At the press conference the changes were described as “a sad moment” as the company is having to take step towards returning the foot print of staff back to 2013 levels.
It was explained the company has a strategy of growth with expansion in the automotive area.
What’s driving the changes
An unexpected drastic reduction in volume (40%) in the last month plays a big factor in the job losses. It was described as ‘a gap’, after the two year project.
However, three main reasons were given for the change to staffing levels.
First was related to the logistics of delivery and the locations of the customers. Gurit’s three main customer areas are Northern Italy, Germany and the UK, so depending on where the location of customers are, projects are delivered from either the UK or Hungary.
The second reason given was related to the rise of automation. On the Island Gurit currently mostly make simple panels such as roof panels or bonnets. These are able to be automated and therefore can take place in Hungary.
The third reason for the changes related to the factory being full, because the automation machines take up more space than people.
Current staffing levels
It was confirmed that staffing levels stand at 220 on automotive front, 310 in composite materials side. Aside from the 80-90 job losses, the company are not foreseeing any further job losses.
When asked whether staff knew about the job losses, general manager, Rudolph Hadorm replied that staff were aware the duration of the programme was only two years, and that they’d peaked about 15 months into contract.
He said, “People felt it would be ending”
The reaction amongst staff has been one of uncertainty, because it’s unclear at the moment which 80-90 jobs are going to be cut. Not surprisingly, it was confirmed that staff do less productive during consultation periods.
Hungary
In the Hungarian plant, which has around 40-50 people working there, the company will see a slight expansion. They produce mostly bus components and under trays for vehicles.
It was confirmed the highly complex items that have to be done by hand, which is considered highly skilled work, happens on the Island.
Savings of £300,000
A statement from the company reads,
“With regard to personnel, Gurit plans to reduce headcount at its facility in Newport, Isle of Wight, UK.
The proposed reduction of 80 – 90 staff during March – April 2015 results from expiration of a customer project and the associated lower workload for manually manufactured automotive parts. Start of a recently announced new automotive project will only commence in Q4-2015.
Gurit estimates that restructuring cost for the socially acceptable downsizing and associated measures will amount to approximately £300.000.”
Staff sacked by text?
OnTheWight had been informed at the end of last year by former staff that some had been laid off a week before Christmas, some notified by text message, being told not to go into work.
This morning Gurit emphatically denied this happened.
