CBM Group 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 to deliver more than 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 supplying 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 predicted that 8% of its jobs would go, 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.
Houseman called for swift and significant political action, saying the time for “great speeches” has passed. “Now we need them to show effective support, perhaps through a VAT ‘holiday’, or another form of tax relief.”
Houseman said CBM 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 the European Industrial Fastener Institute. Web: britishmetalforming.com �2008 FastenerNews.com