Unions blame 300 Cooper Tire job losses on cheap imports

Unite, Britain’s and Ireland’s largest union, today said the job losses were a “cruel blow” that would have a "very big adverse impact" on the local economy.

The American-owned Cooper Tire & Rubber Company Europe Ltd announced it will press ahead with its plans to axe 300 jobs in Melksham by ending light vehicle tyre production in the town.

The company’s move follows collective consultation with Unite, its recognised trade union, as well as other employee representatives.

Unite’s regional officer Tony Hulbert, who is based in Swindon, said: “We are blaming the continued dumping of cheap inferior tyres from countries, such as China, for the jobs losses at Melksham.

“Unite has campaigned against this phenomenon and has repeatedly urged the government to create a level playing field for tyre manufacturers in the UK.

“These inferior tyre imports are not only bad for road safety, but bad for UK jobs and manufacturing – as has been proved by this announcement.

“What also sticks in the gullet is that Cooper Tires constructed a purpose-built factory in Serbia, where labour costs are much cheaper than the UK, which is now going to take on the work from Melksham.

“What adds insult to injury is that our members went over to Serbia to train the workers there in production techniques – and now they have lost their jobs to them.

“We have spent recent months in talks with management to mitigate these job losses which total 312. We have been told that there will be no redundancies until June this year.

“Today’s announcement, which was heralded in October, is still a cruel blow for the workforce and their families and will have a very big adverse impact on the Wiltshire economy.

“We will give our members maximum support in the days and weeks ahead, and work constructively with the management to secure a viable future for the remaining workforce at Melksham.”

Cooper Tires is Melksham’s biggest employer with about 700 workers and currently makes tyres for cars, motorbikes and racing cars.

It is halting the light vehicle tyre production in Melksham and is expected to outsource it to Serrbia in Eastern Europe.

In a statement, Cooper Tire said: “It is expected that production will be phased out over a period of approximately 10 months.

“Cooper Tire Europe will obtain light vehicle tyres to meet customer needs from other sites within Cooper’s global production network.

“With this decision, approximately 300 roles, primarily manufacturing and support positions related to light vehicle tyre production, will become redundant at the site.

“Proper notice will be provided, and employees whose roles are being made redundant will be paid 150 per cent of statutory entitlement as well as other separation pay.

“Expert career services will continue to be offered to impacted employees, including partnering with Wiltshire Council and Melksham Town Council to provide career counselling, job fairs and a career centre.

“Approximately 400 roles will remain to support functions that will continue in Melksham, including motorsports and motorcycle tyre production, the materials business, CTE headquarters/sales and marketing, and the Europe Technical Centre.”

The US company is the world’s 13th largest tyre manufacturer. Its 30-acre site in Melksham dates back to the 1890s.

But the parent company says the town centre plant is now too old and too small to compete in the global marketplace.

Jaap van Wessum, General Manager of Cooper Tire Europe, added: “This has been a time of uncertainty for our colleagues in Melksham and we appreciate their professionalism and co-operation throughout the collective consultation process.

“Now, with the collective consultation concluded and plans for the future confirmed, there is more certainty for the workforce, and we are helping those who will be leaving us over the coming months to do so in the best possible way for their future.

“Cooper Tire Europe will remain in Melksham and we will continue to implement plans designed to grow our business in a way that supports a long-term, sustainable future.”

Chippenham MP, Michelle Donelan, visited Melksham in October to help those under threat of redundancy among the 732-strong workforce.

She said cheap tyre imports from China were not to blame and that the company wanted to cut production costs.

"Countries like Serbia have a lot lower labour cost, something that we're not going to do over here," she said.

Adrienne Westbrook, the mayor of Melksham, said she was “disappointed” the company has decided to move forward with its plans to make 300 redundant.

She said the town council would do all it can to minimise the job losses, which could potentially have a huge impact on the town’s local economy.

“There are 300 people about to lose their jobs, most of them living within the Melksham area and that is going to have an impact on the local economy.

“We hope we can help these people to gain new employment as quickly as possible so they can get the benefits of being employed.”

Cllr Westbrook said the town council would allow the company and the Task Force set up by Wiltshire Council to use the town hall for one-to-one consultations and job fairs for the employees being made redundant to find new jobs.

“Obviously, we don’t want them to have to travel too far but there are many local employers who are very keen to take on skilled workers.

“We hope that there are few forced redundancies so that it will have as little impact as humanly possible,” she said.