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[01 OCT 98] BUSINESS NEWS
Union Predicts Courtaulds Shake-Up

A leading union official today predicted that Courtaulds Engineering could be the next casualty following the take-over of the group.

Akzo Nobel, who took control of Coutaulds earlier this year, has announced the closure of its Lockhurst Lane site with a relocation to Derby where a new company will be located.

The 200 workers affected will be offered new jobs but only if they are prepared to commute or relocate to Derby.

The transfers will be phased in over the next 18 months but the move is expected to result in job losses.

Mike Robinson, of the MSF Union, said the news had not come as a great surprise:

"There was a rumour of this three months ago and that did obviously sow a seed in the mind. We knew when Akzo took over that there would be rationalisation but pulling out like this is more drastic than we thought.

"The thing that makes me angry is that Courtaulds management have let this slide. The share price was dipping a long time ago and they knew drastic action was needed then but didn’t take it. It is the people at the top who are fully responsible.

"There are some senior scientists on site and we estimate that around 30 per cent of the staff involved will relocate and the others will seek redundancy. Relocating or commuting to Derby is not an easy process.

"There is also the fact that travelling time in some instances could come under the European Time Directive, which limits the working week."

Robinson said he was expecting the next casualty to be Courtaulds Engineering:

"It certainly doesn’t fit into the core business of Akzo and I think it is a matter of time before the business is sold on."

Jeff Branston, site manager at Lockhurst Lane, said it was impossible for the company to say how many workers would be prepared to make the move to the new firm, named Acordis.

He said:

"It depends on people’s circumstances. People with partners working in Coventry would find it hard to move but may commute. We are very keen not to lose the skills we have on site and we have a lot of very good people.

"We are not talking about a rush and groups will now discuss the options and people will make up their minds on what to do."

READ THE COURTAULDS PRESS RELEASE
    

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CWN / Business / 01 Oct 98 / Union Predicts Courtaulds Shake-Up

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