Unite 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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