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Thursday, 13 September, 2001, 05:35 GMT 06:35 UK
Jobs rescue talks hit setback
viasystems
Proposals to save some jobs have been rejected
An attempt to prevent job losses at two electronics factories in north-east England has suffered a setback.

Trade union officials met managers from Viasystems to try to save some of the 850 jobs.

But Mel Barras, regional secretary of the Amalgamated Engineering and Electrical Union (AEEU), said all their proposals were rejected.

Viasystems is to close its plant at Longbenton, North Tyneside, with the loss of 525 jobs, and is cutting 325 posts in South Shields.

Circuit boards
Viasystems has received government grants
Union representatives have asked management to reconsider their proposals and will meet again on Tuesday 18 September.

Mr Barras told BBC News Online: "We put certain proposals to the company which were rejected.

"The proposals are aimed at safeguarding some jobs and make sure those who are made redundant receive reasonable packages.

"We have asked them to reconsider and we will meet them again next Tuesday."

People 'annoyed'

Since the redundancy announcement was made on 3 September there have been calls for Viasystems to pay back �17m of government aid.

The money was designed to encourage investment in the north-east of England.

Viasystems received the cash over five years in a scheme aimed at creating jobs in areas of high unemployment.

The firm, which makes printed circuit boards, blamed a continuing downturn in the global electronics market for the job losses.

"People are still annoyed at the decision," added Mr Barras.

"The announcement came as a big shock."

See also:

04 Sep 01 | Business
Job cuts spark 'payback' threat
03 Sep 01 | Business
Electronics firm cuts 850 jobs
29 Sep 98 | The Company File
Gloomy future for 1,000 workers
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