Yet another sad day for British industry...

GarethW · Jan 15, 2010

Source: BBC News.

Bosch to quit south Wales with the loss of 900 jobs

About 900 jobs will be lost after the motor parts maker Bosch announced the closure of its south Wales plant.

Earlier plans being considered at the Vale of Glamorgan site had included the option of 300 job cuts or complete closure.

The firm says it has now decided to recommend closure to its board, transferring work to Hungary in 2011.

Management of the German-owned company spent Thursday informing the workforce, following three months of consultation.

In a statement, it said consultations are now being extended until February, as unions and staff attempt to thrash out redundancy terms.

Stefan Asenkerschbaumer, president of the Bosch starter motors division, said he "deeply regretted" that a "solution" could not be found for the plant, where he had previously been manager.

"I know first-hand the dedication and commitment of the employees here," he said.

"Therefore, this is for me personally one of the toughest decisions in my career."

The company said it was facing the worst economic downturn for decades, saying that this had "left its mark on the Bosch Group".

It said that compared to 2008, sales of its alternator products made at the site near Miskin were down 45% in 2009.

I think everyone is bitterly disappointed that there's not a hope of something being retained
David Lewis, Unite

"Without structural adjustment the long-term commercial future of the whole division is at serious risk," added Dr Asenkerschbaumer.

Bosch warned the workforce in September last year that jobs were at risk unless demand and sales improved.

In 2008, the firm laid off 600 contracted and agency staff at the site.

Announcing the 90-day consultation in October, it warned that it expected a sales decline to continue, slashed by up to 65% in 2010.

The union Unite, which represents much of the workforce at the site said it had spent the last three months in detailed discussions with the company, in a bid to save the plant.

Nick Servini graphic
Nick Servini, BBC Wales business correspondent
This announcement comes at a time when, ironically, most people felt the worst of the job losses were behind us in this recession.

It should act as a sharp reminder about how difficult any economic recovery will be if a blue chip manufacturer like Bosch is pulling out of Wales next year.

And the shockwaves will be felt in many communities as workers travel to this huge plant from all over south Wales.

The blame game will inevitably begin now. Most people accept that Bosch was in a difficult position as a result of the huge fall in sales.

But critics will claim that the Miskin plant was always vulnerable with investment in the new generation of alternators going to other countries.

Regional officer David Lewis said: "We'd asked the company to look at alternative production means - they say they have done that.

"There is no opportunity there because the markets in whichever section that we talked about has unfortunately been adversely affected.

"The work simply isn't there - there's overcapacity in a great number of divisions of Bosch."

Mr Lewis said he understood that the factory would now close in the summer of 2011.

"The truth is that when the company made the (consultation) announcement in October of last year that the vast majority of employees felt there wasn't too much that we could do," said Mr Lewis.

David Lewis of the union, Unite: "Everyone is bitterly disappointed"

"I think everyone is bitterly disappointed that there's not a hope of something being retained.

"The company confirmed that they have a very skilled, a good workforce, but that doesn't take away from the destruction of people's livelihoods and the difficulties for their families.

"So, they are completely and utterly bereft I think of what they can see for the future."

Plant director Adam Willmott said move was one of "pure economics" after a feasibility study had concluded the switch to Hungary, where labour costs were 65% of those at the plant, was necessary to gain the benefit of economies of scale.

He said: "The decision today is one of pure economics and is really a not reflection at all on the workforce".

"Unfortunately over the last 18 months, we have the recessions biting, which has been a big problems for the Bosch group.

"The problem is we have really investigated it depth and with the huge cost pressures that we are facing, we really have no other chance other than to bring the production together, consolidate it, and really look for the economies of scale with the lower labour costs.

"The product we are producing is very much a commodity and it's a very, very tough market at the moment in the automotive industry."

Deputy First Minister Ieuan Wyn Jones said the assembly government was pledging its full support to the workers.
Location map
Bosch is situated in the M4 corridor in south Wales

"This is extremely disappointing news and a significant blow to the hard working and highly-skilled employees of Bosch and the wider community," he said.

"We have regularly met with senior representatives of the company, and today I met with them again to press the case for keeping the plant open. Despite our efforts, we deeply regret that Bosch have come to this decision to proceed with the option to phase out production.

"If this decision goes through, we will continue to do everything possible to help those affected, whether it is helping them find new jobs or gain new skills so they can start alternative careers."

Jane Hutt, Labour AM for the Vale of Glamorgan, said Welsh assembly officials and the first and deputy ministers had met directors visiting from Germany to tell them what help was available from the assembly government.

She said: "It's disappointing because we've offered everything.

"This is about Bosch recognising that we've invested over the last two decades to make sure that Bosch could come.

"We've done everything, the local authorities and former local authority ministers have done everything they could to make sure Bosch could be there and have the best advantage, so it's a bitter disappointment."
Click to expand...

Forum

Pete · Jan 15, 2010

I got made redundant in March last year and itâ€™s a horrible horrible experience to go through, so they have my sympathy.

My girlfriend's father works in a plant making valves in the Midlands, and they were put in an identical situation, but they resolved it by taking voluntary redundancies and working a 4 day week. Sections of the company did move to Europe, but they asked various members of the workforce affected to move to mainland Europe for 3 months to train their replacements at another plant! Talk about rubbing salt into the wounds!

mvalenti · Feb 10, 2010

We in the states call it layoffs... I have been thru 2 in the past year... with a wife, and 4 boys its not easy...

Yet another sad day for British industry...

GarethW Chief Clicker Staff Member

Pete Well-Known Member

mvalenti Well-Known Member

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Yet another sad day for British industry...

GarethW Chief Clicker Staff Member

Pete Well-Known Member

mvalenti Well-Known Member

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