Textiles firm to shed jobs

The company has shed hundreds of jobs

Textiles company Daks Simpson has announced proposals to shed 262 jobs at a Scottish plant.

The company said it has been unable to secure new orders since losing a vital contract with Marks and Spencer.

It said a third of the workforce at its plant at Larkhall, in Lanarkshire, would have to be made redundant.

The loss of the lucrative contract with the high street retailer last summer had prompted the closure of the company's plant in Polbeth, West Calder, with the loss of 260 jobs.

Marks and Spencer withdrew its contract

A company spokesman said: "It is with much regret that, following the cessation of the contract between Daks Simpson and Marks and Spencer in July 2000, the company announces 262 redundancies in its Scottish manufacturing operation.

"Recent changes in the value of the euro have meant that producing clothing in the UK continues to prove a challenge, with nearly all the company's competitors sourcing from low cost countries.

"In order to retain a viable business, Larkhall will continue to concentrate on high added value products to meet customer requirements."

The spokesman said that the company would still employ around 400 workers.

It has been consulting trades union representatives and voluntary redundancy was being offered to staff.

'Low wage economies'

The union GMB Scotland expressed "bitter disappointment" at the decision.

Ian King, GMB Scotland senior organiser for clothing and textiles, said: "Clearly the prevailing economic climate has not assisted Daks Simpson's current plight.

"The company has indicated the problems they experienced in competing with low wage economies and the added burden of a soaring rate of the pound.

"GMB is renewing its call for the Bank of England to cut interest rates to assist manufacturing industry in Scotland."

Scotland Office Minister Brian Wilson said he would work with the company to ensure its long term future.

Brian Wilson: "Products are of the highest quality"

He said: "I greatly admire the efforts that have been made by everyone at Daks to fill the huge gap left by the decision of Marks and Spencer to withdraw their business.

"This has yielded some very positive new orders, particularly in the US, but sadly not on a scale to maintain the workforce at anything like its previous level.

"However, Daks will remain a substantial employer at Larkhall and their products are of the highest quality."

More than 5000 jobs in the Scottish textile sector have been lost since 1998, unions have estimated, while around 30,000 people are employed in the sector across Scotland.

The Borders, West Lothian and Lanarkshire have been particularly badly hit by the downturn in textiles.