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265 electronics jobs under threat 'Devastating' jobs losses warning
(about 16 hours later)
An electronics factory is facing possible closure with the loss of 265 jobs on Anglesey. Meetings are being called over plans to cut 265 electronics factory jobs in Anglesey, which have been described as a potential "disaster" for the area.
Eaton Electric, which makes miniature circuit breakers in Holyhead, would close the plant in December 2009. Eaton Electric in Holyhead could close in December 2009, laying off workers in March, and move work to Europe, where production costs are up to 35% lower.
The company said it reflected efforts to "increase efficiency and continue to optimize global competitiveness". Anglesey council leader Phil Fowlie said it was potentially devastating.
It plans to move work to plants in Europe where production costs are up to 35% lower. The deputy first minister said it was a "very grave blow". Local AM and Deputy First Minister Ieuan Wyn Jones is to meet senior managers of the Birmingham company.
Workers were told they could go home early on Thursday after being told of the consultation over possible closure. Eaton, which makes miniature circuit breakers, said the proposal to lay off so many employees and close the site reflected current market conditions with its foreign competitors undercutting and out-producing their Welsh operation from abroad
I want the workers at Holyhead to know that the assembly government is ready to do everything within its powers to influence Eaton Corporation to maintain a presence on the Holyhead site Deputy First Minister Ieuan Wyn Jones It said the plans were all part of its efforts to "increase efficiency and continue to optimise global competitiveness".
The Birmingham-based company said the first job losses, if they go ahead, will start next March. Mr Fowler said: "Eaton Electrics provides employment for more than 260 people, and I will do everything in my power to safeguard their jobs. A lot of people have families here - husbands and wives - it will have a major knock-on effect Glyn Haines, Unite
A spokesman said in a statement: "We greatly respect the outstanding employees at this facility and appreciate their hard work and dedication in this highly competitive environment." "We have already been in contact with the Welsh Assembly Government and Albert Owen MP, so that we can work together and make this a top priority."
The company said it would offer "extensive support" to workers in finding new jobs and would offer a severance package. He added, "Unfortunately, it seems that the current economic climate is now beginning to bite hard here on Anglesey.
"Eaton also appreciates the tremendous support and hospitality that has been provided to the company and its employees by the local community and regrets the impact this may have," said the spokesman. "This news was not completely unexpected, but it is still nevertheless extremely hard to bear. Eaton Electrics is a major employer on the Island and its loss would represent a devastating blow for Holyhead and the wider community."
The changes follow the US-owned company buying the Moeller electronics group and wanting to transfer production there. Mr Fowler will ask the chief executive of parent company MEM UK for an urgent meeting, and has asked the Welsh Assembly Government and local MP Albert Owen to work together with the counci.
The Holyhead factory makes three million circuit breakers a year but Moeller in Europe makes 60m a year, giving it significant economies of scale. He wants to see if the council can "provide any assistance to help save local jobs during the all-important consultation period, which the company has now launched."
The workers were allowed home on Thursday You may as well close the town down Holyhead councillor Cliff Everett The closure of the plant will take place between March and December next year if it is approved.
Deputy First Minister Ieuan Wyn Jones will meet the corporation's operations director for Europe on Friday. Workers were told to go home early on Thursday after being told of the closure plans.
Mr Jones, who is also the local assembly member, said: "I know that the company has always been more than satisfied with the skills and commitment of its Anglesey workforce and its relationship with the assembly government.. Local Plaid councillor Trevor Lloyd Hughes said that if the job cuts did take place then it would prove difficult for the local community to cope financially-speaking.
"The threat to the future of the operation stems from Eaton's purchase of other electrical companies which make 20 times more circuit breakers a year than the Holyhead plant. The company wants to standardise on the continental product. Circuit breakers
"However, I want the workers at Holyhead to know that the assembly government is ready to do everything within its powers to influence Eaton Corporation to maintain a presence on the Holyhead site where it has operated so successfully." "It's a disaster," he said. "You cannot realise how much of a disaster it is for the people of Holyhead.
Black cloud "I feel sorry for the employees, especially with the credit crunch."
Holyhead councillor Cliff Everett said he knew a number of husband and wife teams at the factory. The plant currently makes three million circuit breakers a year and started out as the Midland Electric Manufacturing Company in 1960.
"It's not a question of losing one job in a family but losing two." The news did not come as a surprise to the workers, although many of the nearly 300 workers at the plant were upset at finally finding out.
He said the area was already under the "black cloud" of job losses at Anglesey Aluminium. Unite union representative Glyn Haines said: "It was half-expected. There's a lot of upset people here.
"You may as well close the town down. If there's no money being spent in the town, then the knock-on effect could affect hundreds of jobs." "A lot of people have families here - husbands and wives - it will have a major knock-on effect. This is a result of market conditions Michael Wilson, plant manager
The Holyhead plant closure would take place from March to December 2009. "A lot of the ladies here are in tears - they've been here many, many years."
It opened as the Midland Electric Manufacturing Company in 1960, and was taken over by Eaton five years ago. The company said it appreciated the workers' "hard work and dedication" and would offer them "extensive support" in finding new jobs and a severance package.
• Meanwhile, 54 people are losing their jobs at a company in Newport, south Wales manufacturing components for electrical equipment. But plant manager Michael Wilson said the harsh realities of cheaper, foreign competition had finally taken its toll on the viability of the plant.
International Rectifier Limited said the jobs are being cut at its Cardiff Road plant to save costs. "This is a result of market conditions," he said. "We've been for a number of years competing against a market that long left the UK and that is now making products in low-cost countries, with lots of automations and in far greater numbers than we make."
Some workers have already left and the remainder will go by the new year. Eaton bought out Germany's Moeller electronics group in April and is looking to transfer production to its Moeller's European plants, which produce 60m circuit breakers a year.