Thursday, April 10, 2008

Cig factory jobs to go as smoking ban hits

Cig factory jobs to go as smoking ban hits

UP to 75 jobs are to be axed by a cigarette filter company after bosses revealed turnover has been hit by the smoking ban and a global downturn.
Filtrona Filters, the world's largest independent supplier of cigarette filters is shedding almost 20 per cent of its workforce at Bede Industrial Estate in Jarrow as demand hits an all-time low.

Bosses at the company revealed the news to staff earlier this week, but it is not yet known who will lose their job.

There will now be a 30-day consultation period to decide which positions will go, leaving the 375 staff fearing the worst.

One machine operator, who fears he may be one of those at risk, told the Gazette today: "It's terrible news, but it can't be helped.

"We're not doing as well as we used to, and they don't need such a big work force any more.

"I've got a family to support, and I'm just praying I'm not one of the unlucky ones to lose my job. I don't know what I'd do.

"Morale is not very good at the moment. It's horrible not knowing."

Filtrona Filters, which has 12 branches worldwide, has struggled since the smoking ban was introduced in July last year, and its Richmond branch was forced to close down last year.

The factory makes filter tips for cigarettes, with much of its production being for the export market.

John Scollen, regional director for Europe for Filtrona Filters, said: "We've been experiencing some challenging trading conditions lately, and activity is down.

"The worldwide tobacco industry has been changing at an increasingly rapid pace.

"Increased smoking restrictions and taxation policies have generated declines in cigarette consumption in North America and Western Europe.

"In the meantime, in response to the reduction in volumes, the company is proposing a potential headcount reduction involving up to 75 redundancies across the plant.

"Unfortunately, we need to size the facility for the demand."

A senior union boss said he is "very worried" about job losses at Filtrona, one of the biggest employers in the area.

Tom Brennan, regional secretary of the GMB, said: "Any redundancies hitting the manufacturing sector is a matter of great concern to us.

"It appears the recent smoking legislation and the general downturn in the number of smokers is hitting the company.

"In response to this, Filtrona loo
ks set to move some of its production out of the area.

"But as the major union at the factory, the GMB will be attempting to mitigate any job losses at Filtrona."

Staff were told about the jobs axe this week, and statutory negotiations will be launched as part of the redundancy process.

Mr Brennan added: "At the last count, the factory employed between 350 and 370 people, and that makes it one of the largest employers in the area.

"We will do all we can to help those facing redundancy."

Jarrow MP Stephen Hepburn said: "Filtrona is a well respected local firm, which has provided good jobs and lots of employment to people in the area for many years.
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"It is very sad that people are being given their redundancy notices, but I will be working with Tom Brennan at the GMB and Coun Paul Waggott, leader of South Tyneside Council, to try and get something out of the situation."

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