Global Fastener News

Metalforming Association Warns of Layoffs

John Wolz

The Confederation of British Metalforming is warning of 5,000 job losses in the next three months and called on politicians of all parties to deliver more than kind words and vague promises.

CBM director general John Houseman said a survey of members show companies “are on the cusp of laying off thousands of skilled workers.”

“We obviously knew many firms were suffering, especially those operating in the automotive industry, and particularly those supply General Motors’ UK plants,” Houseman said. “However, to see firms suggesting that they will be soon forced to shed an average 25% of their workforce is staggering.”

The least pessimistic CBM member surveyed predicted that 8% of its jobs would be lost, the most pessimistic saw 40% going.

Houseman says the biggest influence is not the cost of borrowing, or wider economic conditions, but the decision of motor manufacturers to halt orders. “New car sales have nose-dived, so the auto-makers have suddenly said to our members: “Don”t send me anything before Christmas.’ As a result, they are sitting on stock which no-one wants, and which was produced when metal and energy prices were at their highest,” Houseman explained.

He called for “swift and significant” political action. “We”ve had all the great speeches from successive trade and industry secretaries, about how the government is a friend of manufacturing, that we can stomach,” he said. “Now we need them to show effective support, perhaps through a VAT “holiday”, or another form of tax relief.

UK opposition leader David Cameron”s idea of giving grants to firms, which recruited the unemployed, was interesting, but our members need aid to retain employment. “We”re well aware of the EU rules on state aid, but we feel there is much that the government could do. Support now, to retain thousands of skilled jobs, is far more cost-effective than giving people unemployment benefit and housing support several months down the line.” CBM is a 200-member UK trade association for companies in the forging, pressing and sheet metal forming industries. CBM works closely with a number of European counterparts, including European Industrial Fastener Institute. Web: britishmetalforming.com �2008 FastenerNews.com and Fastener & Fixing Europe