Unite for JobsUnite for Jobs - how the recession is hitting the servicing sector

The servicing sector has felt the knock-on of job losses in many industries.

Unite considers that the state of trade in the lift and escalator, alarm and security, and white goods is the worst in nearly 20 years. There is mounting concern that government action so far is insufficient to avert chronic and lasting damage to the sector and  UK manufacturing.

The collapse in the housing and commercial property market has led to a drastic fall in demand for intruder alarms, fire alarms, lifts and escalators and white goods being required, and has highlighted the following major concerns:

  • Within the alarm and security sector the overall business climate has significantly deteriorated, with orders reducing by around 30% over the last two years.  All the major players within the sector are reviewing their businesses in great detail to seek improved efficiencies and cost savings, and that includes the setting up of registers of interest for those who want to consider voluntary redundancy.
  • While sub-contractors have played a key part in the workforce, this has been reduced by approximately 20% and consideration being given as to whether sub contractors are required at all is ongoing. All efforts to avoid compulsory redundancies are being explored and all options to defend our members’ jobs are being considered.
  • Falling demand for lifts and escalators in new and modernised commercial premises has also led to concern that install and service engineers jobs are at risk as order books dry up. A sector that usually plans 9 to 12 months in advance now only has orders for weeks rather than months.
  • The crisis in the white goods sector has led to the announcement by Indesit that they intend to close their Kinmel Park, Bodelwyddan, North Wales washing machine factory with the loss of over 300 jobs.  The company cites the ‘continuing decline’ in the market as the reason for closure.

 

Unite has been fighting hard to save jobs and get help for the industry, campaigning at both UK and EU level to ensure that the sector survives, and that the skills required when the recession ends are still available.  Without skilled employees service companies will not survive.

 

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