Panasonic confirms 60 job losses

The company blames 'severe competition'

Staff at the Panasonic factory in Newport have been told that up to 60 jobs could be lost because of increased competition from abroad.

The Japanese giant announced that it was reducing its non-manufacturing staff at its factory in the city by July 2005.

Currently 550 staff are employed at the plant, which specialises in telecommunications equipment.

The Amicus union is in talks with the company about the proposals.

The firm, based in the Duffryn area of the city, has blamed the combination of increasing competition from global manufacturers and pressures on the market supply chain for the losses.

Managing Director Mr H Harada said: "Severe competition and increasing pressures on our market supply chain have made it necessary for us to reorganise and restructure our factory.

"We have already taken measures to improve the competitiveness and efficiency of the Newport factory, but need to further reduce costs."

The company said it would "consult thoroughly" with workers and unions and " regret very much the concern that will be caused to them by this proposal".

Bryan Godsell, regional officer for union Amicus, which represents staff at the Newport plant, said: "There has been speculation for some time that redundancies were going to be announced at some stage because of competition within the sector.

"There's a general feeling of concern and uncertainty (among staff) because of the consultation process, but there has been speculation and people will come to terms quickly with the situation."

Mr Godsell added that the company and union were now in a 30-day consultation period and there were hopes that most, if not all, of the redundancies would be voluntary.

Panasonic, which also has plants at Cwmbran and Port Talbot, announced in 2004 that it was ending production of colour TVs and set-top boxes at its factory at Pentwyn in Cardiff, affecting around half of the workforce of 1,000.