Job cuts firm can keep grant

Production is moving to the Czech Republic

Black and Decker which has recently axed almost 1,000 jobs in County Durham, does not have to return a £2m job-creation grant.

The company was given the cash to create jobs in the Spennymoor area four years ago.

Earlier this month the company said it was cutting its workforce and transferring the bulk of its operation to the Czech Republic.

But the company will not be made to return the money awarded by the Government Office for the North East.

Separate grant

Union officials have demanded the money be returned.

The GMB union has now called on the government to get tough with companies that do not demonstrate the "proper commitment" to the region.

Meanwhile, the development agency One North East, says a separate grant to save the remaining 450 jobs in Spennymoor is still on the table.

The company, which makes professional and consumer power tools at the plant, has blamed low-cost imports from the Far East for the job losses.

In 2000, Black & Decker employed more than 2,300 people in Spennymoor - making drills, strimmers and other power tools.