JCB have announced
that they may have to cut more costs as sales continue to drop due to
the current financial situation and credit crunch. Just last week
production workers at JCB voted to accept a massive cut in hours to
just four working days a week, however it has been revealed that the
GMB union is now calling for 1,000 office staff to agree to a pay cut
in order to share the burden. Chief
executive Matthew Taylor commented that although a four day week was
not an option for a number of sales and clerical staff talks were
taking place regarding office positions although there is, as yet, no
indication of what type of action will be taken to help cut costs.
He went on to say "The offices are
something we have got to look at. It is a different environment to the
shopfloor – a lot of our office staff are outward-facing and our
customers are 24-7, so there are different things to consider. The
shopfloor is the first to be affected because if you have got less
demand then you need less machines coming out but if the revenues don't
support the cost structure, you have to address it." This
year JCB have seen turnover drop by almost 50%, down from £2.25 billion
last year. The construction industry is one of the hardest hit by the
credit crunch and global financial situation.
GMB
union convener Gordon Richardson said "I don't want to see any more
workers losing money. However,
there is a scenario where some workers are here on reduced hours and
others in ancillary roles are not, and it sticks in the throat. I am
not here to say people should be losing hours, but I am saying we
should be all in this together."
Cheadle
councillor Julie Bull commented "We have to hope that all these drastic
cuts do the trick until things pick up and they are in a better
position. It has been hard for people in this area – everyone is
talking about JCB at the moment. But at the end of the day they still
employ a lot of people and we have got to support them and pray things
pick back up." | 
