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Short time at JCB to avoid job losses

Tuesday, December 1, 2015

GMB MEMBERS VOTE FOR TEMPORARY SHORTER WORKING AT JCB AS AN ALTERNATIVE TO COMPULSORY REDUNDANCIES

Vote is in the spirit of the approaching festive season and means that over 100 people who were under threat of compulsory redundancy will now have a much happier Christmas says GMB

GMB members at JCB have voted to work shorter hours for the next three months to save the jobs of colleagues at risk of compulsory redundancy. 
This follows an announcement by JCB earlier this month that up to 290 shop floor positions were are risk of redundancy because of a rapid deterioration in world construction equipment markets. See notes to editors for copy of GMB press release dated 4th November 2015.

During the first stage of consultations, the number of jobs at risk of redundancy reduced from 290 to 235.  In order to avoid compulsory redundancies JCB and GMB also proposed a flexible working pattern for shop floor employees until the end of February to save in excess of 100 jobs. GMB members have voted in favour of the proposal after a ballot which concluded on Friday 27th November.

The flexible working pattern will operate for the next three months at JCB's World HQ in Rocester, Staffs, JCB Heavy Products in Uttoxeter, JCB Cab Systems in Rugeley and JCB Transmissions in Wrexham. The standard working week at JCB is 39 hours. The number of hours worked at each site will now vary depending on production volumes but will be 34 hours or above. Employees will have the choice of either being paid for just the reduced hours worked or being paid for the full 39 hour week and then working back the 'banked' hours next year.

Gordon Richardson, GMB Works Convenor at JCB, said: "GMB members are to be congratulated on the result of the ballot. It's a magnanimous act which is in the spirit of the approaching festive season and means that over 100 people who were under threat of compulsory redundancy will now have a much happier Christmas."

Graeme Macdonald, JCB Chief Executive,  said: "Our shop floor colleagues are to be applauded for their actions. JCB and the GMB were determined to do everything possible to avoid compulsory redundancies through a combination of voluntary redundancies, early retirements and flexible working. It highlights a great team spirit at JCB and also means we can retain some vitally important skills."

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Contact  GMB  Chris Humphreys on 07957 266864 or Gordon Richardson on 01889 593 476 or GMB press office 07921 289880.

For further information contact: Nigel Chell JCB Press Office on 01889 590312

Notes to editors

Copy of GMB press release dated 4th November 2015

CONSULTATIONS ON 290 REDUNDANCIES AT JCB AS MARKET DECLINE CONTINUES

Our job as a trade union is to now work hard to formulate a plan to mitigate the impact of the proposed redundancies says GMB

GMB, the union for staff at JCB, has started a 45 day consultations with the company over 290 proposed redundancies. 
The reason for the possible job losses is that a rapid deterioration in world construction equipment markets continues.  The slowdown, which started in the summer, has resulted in a big fall in machine orders from customers.

The news follows an announcement in September that up to 400 UK staff positions were at risk of redundancy as a result of the economic situation. Consultations over those redundancies continue. 
In the first six months of the year, the market in Russia has dropped by 70%, Brazil by 36% and China by 47%. Parts of Europe are also struggling, with France down by 26%. Even the strong growth in the UK and North America has softened due to a fall in market confidence over the summer, which has been prompted to an extent by low oil and commodity prices in countries which depend on these resources to drive economic growth.
Gordon Richardson, GMB Works Convenor for JCB, said: “This news is obviously very disappointing but it has been apparent now for some time that global markets have been declining. 
Our job as a trade union is to now work hard to formulate a plan to mitigate the impact of the proposed redundancies.”

Graeme Macdonald, JCB CEO, said: “Manufacturers in the construction equipment industry are currently facing very tough trading conditions and we have to react to the current market reality to protect the long-term future of the business. Regrettably this means taking the very difficult decision to reduce the number of shop floor positions by up to 290 across the UK. As the global economy shows no sign of improving, the short-term outlook remains very challenging.”
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