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Jobs losses could be 'disastrous' Jobs losses could be 'disastrous'
(40 minutes later)
The possible loss of 265 electronics jobs in a factory in Anglesey has been branded a potential "disaster" for the local community. The possible loss of 265 electronics jobs in a factory in Anglesey has been described as a potential "disaster" for the local community.
Eaton Electric in Holyhead could close in December 2009, laying off workers in March if the closure goes ahead.Eaton Electric in Holyhead could close in December 2009, laying off workers in March if the closure goes ahead.
A local councillor described the news of the possible job losses as a "disaster for the people of Holyhead". Deputy First Minister Ieuan Wyn Jones is meet senior management on Friday.
Deputy First Minister Ieuan Wyn Jones is to hold a meeting with the company's senior management on Friday. The Birmingham-based company, which took over the plant in 2003, may move work to its plants in Europe, where production costs are up to 35% lower.
Eaton, which makes miniature circuit breakers, said the proposal to lay off so many employees and close the site reflected current market conditions with its foreign competitors undercutting and out-producing their Welsh operation from abroad.Eaton, which makes miniature circuit breakers, said the proposal to lay off so many employees and close the site reflected current market conditions with its foreign competitors undercutting and out-producing their Welsh operation from abroad.
The Birmingham-based company, which took over the plant in 2003, may move work from north Wales to its plants in Europe where production costs are up to 35% lower. A lot of people have families here - husbands and wives - it will have a major knock-on effect Glyn Haines, Unite
A lot of people have families here - husbands and wives - it will have a major knock-on effect Glyn Haines - Unite It said the plans were all part of its efforts to "increase efficiency and continue to optimise global competitiveness".
It said the plans were all part of its efforts to "increase efficiency and continue to optimize global competitiveness".
The closure of the plant will take place between March and December next year if it is approved.The closure of the plant will take place between March and December next year if it is approved.
Workers were told to go home early on Thursday after being told of the closure plans.Workers were told to go home early on Thursday after being told of the closure plans.
Local Plaid councillor Trevor Lloyd Hughes said that if the job cuts do take place then it would prove difficult for the local community to cope financially-speaking. Local Plaid councillor Trevor Lloyd Hughes said that if the job cuts did take place then it would prove difficult for the local community to cope financially-speaking.
"It's a disaster," he said. "You cannot realise how much of a disaster it is for the people of Holyhead."It's a disaster," he said. "You cannot realise how much of a disaster it is for the people of Holyhead.
"I feel sorry for the employees, especially with the credit crunch.""I feel sorry for the employees, especially with the credit crunch."
The plant currently makes three million circuit breakers a year and started out as the Midland Electric Manufacturing Company in 1960.The plant currently makes three million circuit breakers a year and started out as the Midland Electric Manufacturing Company in 1960.
It seems the potential job losses did not come as a surprise to the workers although many of the nearly 300 workers at the plant were upset at finally finding out about the news. It seems the potential job losses did not come as a surprise to the workers, although many of the nearly 300 workers at the plant were upset at finally finding out.
Unite union representative Glyn Haines said: "It was half-expected. There's a lot of upset people here. Mr Wilson said foreign competition was behind the closure plansUnite union representative Glyn Haines said: "It was half-expected. There's a lot of upset people here. Mr Wilson said foreign competition was behind the closure plans
"A lot of people have families here - husbands and wives - it will have a major knock-on effect."A lot of people have families here - husbands and wives - it will have a major knock-on effect.
"A lot of the ladies here are in tears - they've been here many, many years.""A lot of the ladies here are in tears - they've been here many, many years."
The company said it appreciated the workers' "hard work and dedication" and would offer them "extensive support" in finding new jobs and a severance package.The company said it appreciated the workers' "hard work and dedication" and would offer them "extensive support" in finding new jobs and a severance package.
But plant manager Michael Wilson said the harsh realities of cheaper, foreign competition had finally taken its toll on the viability of the plant.But plant manager Michael Wilson said the harsh realities of cheaper, foreign competition had finally taken its toll on the viability of the plant.
"This is a result of market conditions," he said. "We've been for a number of years competing against a market that long left the UK and that is now making products in low-cost countries, with lots of automations and in far greater numbers than we make.""This is a result of market conditions," he said. "We've been for a number of years competing against a market that long left the UK and that is now making products in low-cost countries, with lots of automations and in far greater numbers than we make."
Deputy First Minister Ieuan Wyn Jones will meet Eaton's operations director for Europe on Friday. Eaton bought out Germany's Moeller electronics group in April and is looking to transfer production to its Moeller's European plants, which produce 60m circuit breakers a year.
Eaton bought-out Germany's Moeller electronics group in April and looking to transfer production to its Moeller's European plants which produce 60m circuit breakers a year.