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07:03 GMT, Thursday, 27 November 2008

Hundreds wait for job fate news

COSi factory

Workers at a cosmetics factory are waiting to hear whether they will still be in a job after this week.

Cosmetics firm Budelpack International COSi, which employs 400 at Maesteg, went into administration on Wednesday.

Unions say staff have been paid to the end of November, but administrators have yet to decide how many will be needed to complete outstanding orders.

At least 1,500 workers in Wales have been told this month they will be made redundant or their job is at risk.

The fate of the cosmetics manufacturer came as it emerged that 200 jobs could also go at the Serious Food Company's juices plant at Llantrisant, Rhondda Cynon Taf.

The Welsh Assembly Government said it was potentially "a very serious blow" to two communities and it was working with both firms to continue operations.

WELSH JOB LOSSES TIMELINE


Location map

The Conservatives said ministers seemed powerless to prevent a "daily haemorrhaging of jobs".

Announcements of at least 1,500 job losses and threats, mostly in the south Wales valleys, have been made over the last month.

They include more than 330 at Hoover in Merthyr Tydfil and 250 posts under threat at Bosch car components plant at Miskin.

The latest involves 389 workers at Budelpack, who were told on Wednesday afternoon that there would be job losses and more details will be given on Friday.

Mervyn Burnett of the GMB Union said all the workers have been paid up until the end of November.

He said there are orders to complete but that the administrators will have to decide in the next 48 hours how many of the current staff are needed to do that.

Buyout

Administrator Grant Thornton blamed the downturn in the economy and said it aimed to secure a purchaser for the business.

Director of recovery and reorganisation Alistair Wardell said: "It has been well documented that the general business climate is extremely challenging at the moment, but we will be making strenuous efforts to secure a purchaser for this business.

Meanwhile, the Serious Food Company entered a 90-day consultation period with 800 staff, with 200 jobs under threat.

The company makes juices for supermarkets.

Conservative economy spokesman David Melding AM said it was "yet another sign of the fragility of the Welsh economy".

He added: "We need to hear urgently from the assembly government about what it intends to do to support the communities and hundreds of people affected by these announcements.

"Despite all their promises to support businesses and workers in Wales it seems ministers are powerless to stop this daily haemorrhaging of jobs.

"There is no doubt the number of unemployed people in Wales will reach six figures by Christmas - each and every one of them representing the human face of Gordon Brown and Rhodri Morgan's economic failures."

Support

Ogmore AM Janice Gregory called it a "terrible blow" for the workers and for the wider community.

"I have already raised my concerns with the deputy first minister and contacted the trade union to discuss how I can help," she said.

Plaid Cymru AM Chris Franks added: "What I want people of Llantrisant to understand is how determined we are to be on their side and work with them to retain jobs in the area."

A Welsh Assembly Government spokesman said officials were already working with both companies "to mobilise all available support" for their continued operations.

"We know that every effort will be made to find a buyer able to continue the Budelpack business at Maesteg," he said.

"The Serious Food Company is examining ways of scaling back operations - in the face of difficult market conditions - to maintain a sustainable operation in Wales.

"Potentially, this could be a very serious blow to two communities, and we will do everything we can to work with both companies, the workforce and their unions to try to avert or alleviate the consequences of these announcements."



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Related to this story:
Bosch confirms 250 jobs at risk (19 Nov 08 |  Wales )
Unions hold crisis Hoover talks (19 Nov 08 |  South East Wales )
Cosmetics firm cutting 200 jobs (29 Oct 08 |  South East Wales )
200 cosmetics factory jobs to go (24 Oct 08 |  Wales )
Hundreds of cosmetics jobs saved (12 Nov 07 |  South East Wales )
Fears grow for 600 cosmetics jobs (26 Oct 07 |  Wales )
500 jobs created at Ford and Cosi (17 Jan 07 |  South East Wales )

RELATED INTERNET LINKS
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Serious Food Company
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