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'Devastating' jobs losses warning Talks planned on factory future
(about 9 hours later)
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. More talks are to be held about the future of an Anglesey electronics plant which could close next year with the loss of 265 jobs.
Eaton Electric, Holyhead, could close in December 2009, laying off workers in March and moving work to continental Europe, where costs are some 35% lower. Eaton Electric in Holyhead has said it is considering moving production of its miniature circuit breakers to Europe where costs are lower.
Anglesey council leader Phil Fowlie said it was potentially devastating. Deputy First Minister Ieuan Wyn Jones met senior managers on Friday.
Local AM and Deputy First Minister Ieuan Wyn Jones is to meet senior managers of the Birmingham company. Afterwards he said more talks will be held between the Welsh Assembly Government and the company next week.
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 Mr Jones, the Anglesey AM, said: "We have a long way to go to even begin to make the company rethink its proposals to close the plant but I welcome their decision to work with us in order to discuss any possible way ahead."
The AM who is also the assembly government's economic development minister met Eaton's director of operations for Europe. A lot of people have families here - husbands and wives - it will have a major knock-on effect Glyn Haines, Unite 265 jobs threatened at plantIsland reels from latest job cuts
Mr Jones said he was "absolutely determined" that his department "leaves no stone unturned in the strongest possible effort to prevent the closure of the plant and the damage that closure would do to the community".
There has been strong opposition after the company announced on Thursday that it could close its plant in December 2009, laying off workers in March and moving work to continental Europe, where costs are 35% lower.
Eaton 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
It said the plans were all part of its efforts to "increase efficiency and continue to optimise global competitiveness".It said the plans were all part of its efforts to "increase efficiency and continue to optimise global competitiveness".
Mr Fowlie 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 class="" href="/1/hi/wales/north_west/7663011.stm">265 jobs threatened at plant class="" href="/1/hi/wales/north_west/7662492.stm">Island reels from latest job cuts Anglesey council leader Phil Fowlie said it was potentially devastating for local people and the economy.
"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." Devastating blow
He added, "Unfortunately, it seems that the current economic climate is now beginning to bite hard here on Anglesey. He said: "Eaton Electrics provides employment for more than 260 people, and I will do everything in my power to safeguard their jobs.
"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." "This news was not completely unexpected, but it is still nevertheless extremely hard to bear.
Mr Fowlie 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. "Eaton Electrics is a major employer on the island and its loss would represent a devastating blow for Holyhead and the wider community."
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." Mr Fowlie will ask the chief executive of Eaton's parent company MEM UK for an urgent meeting, and has asked the assembly government and local MP Albert Owen to work together with the council.
The closure of the plant will take place between March and December next year if it is approved. 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.
Workers were told to go home early on Thursday after being told of the closure plans.
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.
Circuit breakersCircuit breakers
"It's a disaster," he said. "You cannot realise how much of a disaster it is for the people of Holyhead."It's a disaster," he said. "You cannot realise how much of a disaster it is for the people of Holyhead.
"I feel sorry for the employees, especially with the credit crunch."
The plant currently makes three million circuit breakers a year and started out as the Midland Electric Manufacturing Company in 1960.The plant currently makes three million circuit breakers a year and started out as the Midland Electric Manufacturing Company in 1960.
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. The news did not come as a surprise to the workers.
Unite union representative Glyn Haines said: "It was half-expected. There's a lot of upset people here. Unite union representative Glyn Haines said: "A lot of people have families here - husbands and wives - it will have a major knock-on effect.
"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
"A lot of the ladies here are in tears - they've been here many, many years.""A lot of the ladies here are in tears - they've been here many, many years."
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.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.
But plant manager Michael Wilson said the harsh realities of cheaper, foreign competition had finally taken its toll on the viability of the plant.
"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."
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.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.