Notts firms looking to cut jobs double in 3 months
NEARLY one in five companies in Nottingham and Notts are looking to cut jobs, it has emerged.
Latest figures revealed by Derbyshire and Notts Chamber of Commerce show 19% of its 1,700 Notts members are looking at reducing their workforce.
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crest fallen: Steve Pallender, Alan Wheldon, and Lewis Day face losing their jobs at the Dairy Crest bottling plant in Lenton C300908JC1-7
This is almost twice the number looking to cut jobs three months ago, when only ten per cent of firms reported looking to cut staff numbers.
During the same period, the number of businesses looking to expand their workforce this quarter has dropped from 28% in June to 15% in September. In March this year 35% of firms were looking to increase staff numbers, which means a 20% drop.
John Dowson, head of policy at the chamber, said: "Obviously all businesses are looking to cut their costs in difficult trading environments.
"But the majority of businesses are still looking to stay where they are or increase."
The news comes after up to 240 staff in the city and county were facing the axe yesterday.
Milk firm Dairy Crest, which employs 215 workers, revealed plans to close its Lenton operation.
The company said it was making the move to cut costs by opening a new regional distribution centre in the West Midlands.
Arthur Reeves, the company's external affairs director, said it was a "difficult decision".
He said: "We feel we have to do all we can to keep our prices down and we are looking at every way.
"I think it was mainly geography. The other sites can cover the areas where we deliver to from Nottingham."
Moments later, Chilwell-based TV news programme Central Tonight learned that half of its staff faced redundancy.
The 45 journalists and broadcasters have until October 17 to take voluntary redundancy. Those who do not will then have to re-apply for their own jobs.
ITV is looking to merge its East and West Midlands local news programmes to save £40m.
The proposed move is open to consultation until December.
Unions have warned of possible industrial action.
In the city, 7,931 people or 4% of the population claimed Job Seekers Allowance in August this year – nearly double the East Midlands average of 2.3%.
In the county, there were 9,165 claims – 1.9% of the population and below the national rate of 2.4%.
Simon Green, Nottingham City Council's director for sustainable development, said a rise in unemployment could be expected.
He said: "What's clear is as a result of current trading, companies are having to look more closely at their costs."
He added there had been growth in employment rates in the county and that Nottingham's science-based industries were healthy.
Mr Dowson said Nottingham was experiencing "changes" and added that Derbyshire was seeing "positives" despite the economic climate.
He said some sectors in Notts were experiencing growth, such as retailers at the lower end and higher ends of the market.
chris.birkle@nottinghameveningpost.co.uk
Comments
by Adrian, Derbys
Wednesday, October 01 2008, 12:11PM
“Consider the additional impact of the workplace parking levy, this will give considerably more businesses the excuse to close Nottingham operations. Many employees will expect pay rises to cover this aditional charge, and many companies may not be in a position to pay it. More and more businesses will relocate to areas with better road access, lower business charges, and most employees will not be able to use public transport to get to work.
Revenues lost by the council will be substantial, as will the amount of income derived from consumers, this will lead to even more businesses looking to close. Once this spiral begins, it is hard to stop; so learn a lesson .”