Labour Research October 2000

News

Coats Viyella adds to textile jobs misery

Unions have attacked the axing of over 1,900 jobs by textile

multinational Coats Viyella which is shutting down four factories in the

East Midlands. The company blamed the closures partly on the loss of a

major contract with retailer Marks & Spencer.

Closure of the Ollerton, Nottinghamshire plant, will result in the loss

of 345 jobs, while 263 jobs will go from Worksop, also in

Nottinghamshire, 546 will be lost from Shepshed in Leicestershire, and

381 will disappear from Scunthorpe in Lincolnshire.

In addition to the closures, Coats said a further 447 jobs are to go

from other East Midlands sites in Derbyshire and Nottinghamshire. And

another 5,700 jobs in the UK, Morocco, Sri Lanka and Cambodia are

threatened by the move to withdraw from clothing manufacturing.

Peter Booth, manufacturing organiser for the T&G general union, called

it "socially irresponsible action" and demanded urgent meetings with the

company and a recall of the European works council. And John Edmonds,

general secretary of the GMB general union, said "the government must

act to prevent textile manufacturers plunging from Saville Row to Skid

Row."

The job cuts were announced at the same time as Coats was reporting its

half-year figures. In the six months to June 2000, the group saw pre-tax

profits fall by 31% to £35.6 million.