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Unions hold crisis Hoover talks | Unions hold crisis Hoover talks |
(about 4 hours later) | |
Unions have held crisis talks with managers at the Hoover headquarters in south Wales after they announced up to 337 manufacturing jobs could be lost. | |
The company, which makes washing machines and tumble driers in Merthyr Tydfil, said it could no longer make competitively-priced items at the site. | The company, which makes washing machines and tumble driers in Merthyr Tydfil, said it could no longer make competitively-priced items at the site. |
Unite and TUC members also met the deputy first minister. | |
Ieuan Wyn Jones later told AMs the government's response would be "imaginative, decisive and swift". | |
Hoover announced in a statement on Tuesday afternoon it was starting a consultation with its manufacturing staff. | Hoover announced in a statement on Tuesday afternoon it was starting a consultation with its manufacturing staff. |
It said: "Regretfully, to ensure that Hoover Candy becomes more competitive we must consider all of our options, including the possibility of the cessation of manufacture at Merthyr Tydfil." | It said: "Regretfully, to ensure that Hoover Candy becomes more competitive we must consider all of our options, including the possibility of the cessation of manufacture at Merthyr Tydfil." |
Andy Richards, Wales' regional organiser for Unite, said prior to the meetings they were hoping for "scope for negotiation" with Hoover management. | |
"For sure, I think the workforce has been aware of difficulties at the plant, exacerbated by the financial crisis, but where there is hope we'll continue to explore whatever options are open to us," he said. | |
He added the union was dealing with a number of companies facing downturns, including some who had not yet made announcements of possible job losses. | He added the union was dealing with a number of companies facing downturns, including some who had not yet made announcements of possible job losses. |
HOOVER IN MERTHYR 1948: Factory opens1973: By time of Queen's visit almost 5,000 people worked at site1985: Hoover became manufacturer for Sinclair C5 - company merges with Chicago Pacific Corportation1992: Hoover launched a disastrous free-flights offer for customers buying a product over £100 - but it could not meet demand and faced a £48m payout after court cases1995: Hoover sold to Italian firm Candy | HOOVER IN MERTHYR 1948: Factory opens1973: By time of Queen's visit almost 5,000 people worked at site1985: Hoover became manufacturer for Sinclair C5 - company merges with Chicago Pacific Corportation1992: Hoover launched a disastrous free-flights offer for customers buying a product over £100 - but it could not meet demand and faced a £48m payout after court cases1995: Hoover sold to Italian firm Candy |
"There's things that we can do, but the scale of the [financial] meltdown is worrying," he said. | "There's things that we can do, but the scale of the [financial] meltdown is worrying," he said. |
Questioned as to whether the assembly government could offer any realistic help to companies such as Hoover, he replied: "I don't think it's an impossible task, but the scale of what they can provide will be dependent on what they get from central government. | Questioned as to whether the assembly government could offer any realistic help to companies such as Hoover, he replied: "I don't think it's an impossible task, but the scale of what they can provide will be dependent on what they get from central government. |
"We're looking for the assembly to maximise the support they can give to manufacturing and industry across Wales. The scale and seriousness of the financial crisis is unprecedented." | "We're looking for the assembly to maximise the support they can give to manufacturing and industry across Wales. The scale and seriousness of the financial crisis is unprecedented." |
The factory employs a total of 450 staff. Aside from manufacturing, it has finance, legal, IT, order processing, transport and logistics, warehouse and distribution departments there which are not affected by the announcement at this stage. | The factory employs a total of 450 staff. Aside from manufacturing, it has finance, legal, IT, order processing, transport and logistics, warehouse and distribution departments there which are not affected by the announcement at this stage. |
Senedd | |
Mr Richards and members of Wales TUC's general council met Mr Jones at the assembly on Wednesday afternoon. | |
Afterwards, Mr Jones said: ""It would be unfair and irresponsible of me, or for anyone in this chamber for that matter, to raise expectations about what we might do or achieve. These are difficult and testing times." | |
The company had a "long and proud" association with Wales, employing 5,000 people at Merthyr Tydfil at its peak, he added. | |
Merthyr Tydfil's assembly member Huw Lewis told the chamber: "We can't give up this factory without a fight. | |
"It's the last great manufacturer of its kind in my part of Wales and the potential job losses would be a major blow to the strategic regeneration of the northern Valleys." | |
Mr Lewis said earlier this month that jobs could be under threat. | |
He called Tuesday's news a "terrible blow" for the workforce and Merthyr Tydfil. | He called Tuesday's news a "terrible blow" for the workforce and Merthyr Tydfil. |