Caravan factory to lose 290 jobs

Nearly 290 workers are to lose their jobs after a company's decision to end production of caravans in Hull, trade unions have said.

Leeds-based Endless is buying Cosalt Holiday Homes but wants to close the caravan-making factory in Stoneferry Road because of a slump in orders.

The GMB union said a total of 289 jobs would be lost while 40 staff remained in the luxury holiday homes division.

Endless said the factory had been making losses of £750,000 per month.

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The caravan company was losing a lot of money

After talks with site managers GMB official Ken Vincent said the workers and their families "do not know what tomorrow will bring for them".

"GMB has today put a claim for an enhanced redundancy package to the new owners and we are waiting for their reply," he said.

"The first priority of the new owners should be to look after the workers and provide them with enough cash to enable them to keep their families while they look for new work."

Construction union UCATT said it was "very disappointed" by the news.

Regional secretary Derek Johnson said: "This is a kick in the teeth for the local community".

'Not viable'

A spokesman for Endless said Cosalt Holiday Homes had been operating in "very challenging trading conditions".

He said: "The fall in confidence arising from the threat in recession and the rapid cooling of the property market has led to a steep fall in demand for holiday homes.

"This has had a particularly harsh impact on the caravans side of the business at Stoneferry Road in Hull, with losses currently running at £750,000 per month."

Endless said some jobs could be preserved in the arm of the business which provides lodges and higher-end caravans, but the caravans business operating from Stoneferry Road was "not viable unfortunately".

A consultation exercise with staff and unions has started.

Investment director Mathew Deering said: "We recognise that the proposal to close the Stoneferry site represents a difficult and regrettable outcome.

"However, we want to give the lodges business the best chance of survival in very difficult market conditions."