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Last Updated: Thursday, 21 April, 2005, 17:42 GMT 18:42 UK
Redundancies threat at Hotpoint
Hotpoint production line
The laid-off workers make fridges at the Peterborough plant
Jobs could go at Hotpoint if short-time working does not reduce factory stocks, a confidential company document warns.

The 400 production staff at its plant in Peterborough, Cambridgeshire, already laid off for five days next week, face more lay-offs in May.

The company has said the factory's long-term future was not in doubt.

But the confidential company briefing paper says if the work reductions fail, the company would have to "declare a redundancy situation".

Preserving jobs

In a statement to BBC News on Thursday, a company spokesman confirmed that there would be temporary short-time working this month and a lay-off period between 9 to 13 May.

The briefing, obtained by the BBC, said a review had concluded that a further period of short-time working was necessary in May as stocks remained unacceptably high.

The company says sales of fridges/freezers are seasonal and it expects an upturn in sales in the coming weeks.

"We cannot continue to declare short-time working; therefore we envisage this would be the last period of such working.

"Should this action fail to satisfactorily address the stock issue, we would unfortunately have to declare a redundancy situation," says the paper.

Workers' pay

It said the lay-offs were aimed at preventing compulsory redundancies and preserving jobs.

The GMB union said it was seeking legal advice on workers' pay during lay-offs.

A spokesman said the workers had been guaranteed the government statutory minimum of �85.93 for the first five days of lay-off.

There are 1,400 people employed at the plant, which is also the company's UK headquarters.




SEE ALSO:
More lay-offs looming at Hotpoint
21 Apr 05 |  Cambridgeshire


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