Computer firm cuts 500 jobs

The company is closing its Gourock plant

Fullarton Computer Industries has announced the loss of 500 jobs at its Gourock plant.

The firm said it plans to close its Faulds Park manufacturing plant immediately - a decision described as "shocking" by unions.

A spokesman for Fullarton said the factory was unable to compete with lower-cost plants in eastern Europe.

Fullarton assembles PCs in Gourock for the company Sanmina, which in turn is a contractor to IBM.

IBM is expected to make a major announcement on its manufacturing division on Tuesday amid fears that hundreds of jobs could be lost at its Greenock plant.

The remnant of the Gourock work will be completed at the Prestwick site and a small number of workers from the Gourock facility will be offered employment

Fullarton spokesman

Fullarton, which employs 1,300 people in Scotland, said its other sites at Dundee, Prestwick and Irvine would not be affected.

A spokesman said: "The electronics industry in Scotland continues to face serious global competition and our Gourock facility has become uncompetitive in the face of lower-cost economies in Eastern Europe and elsewhere.

"The more competitive business model which we have been able to devise and maintain at our facility at Prestwick means that, even in the face of severe global competition, we can retain a box build presence in Scotland.

"On that basis, the remnant of the Gourock work will be completed at the Prestwick site and a small number of workers from the Gourock facility will be offered employment there."

Strong indications

Fullarton said it has informed the ISTC union, which represents the Gourock employees, that a 90-day redundancy notification has been forwarded to the Department of Employment.

The union's assistant general secretary, Eddie Lynch, reacted angrily to the announcement.

"This shocking news comes as a body blow to the whole Greenock community," he said.

"The way that the company has handled this has been a disgrace.

We believe that the plant could have had a future but the company has taken a short-sighted decision to close it

Eddie Lynch
ISTC union

"The workforce expected to return to work on Thursday after their Christmas break and now find themselves locked out. This is no way to run a business in the 21st century."

He said legislation was needed to ensure that UK employees have the same rights to information and consultation as their European counterparts.

"We believe that the plant could have had a future but the company has taken a short-sighted decision to close it," he added.

IBM, which employs 5,500 people at its Greenock plant, has refused to discuss any plans prior to talks with workers on Tuesday.

Bernie Hamilton, regional organiser for the Amicus union, said he had received strong indications the firm was planning to contract electronics work to another firm.

The company announced 350 job losses at the plant in 1998 with another 350 axed from the payroll in November 2000.