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Last Updated: Wednesday, 4 June, 2003, 08:28 GMT 09:28 UK
Thousand job losses at pottery firm
Wedgwood factory workers
Workers at the factory were devastated by the news

Pottery firm Waterford Wedgwood has announced that more 1,000 jobs are to go with the closure of two of its factories in Stoke-on-Trent, Staffordshire.

The announcement was made at 0800 BST on Wednesday when the company revealed its annual figures.

Waterford Wedgwood is transferring the production of its lower priced Johnson Brothers-branded earthenware to factories in the Far East where it says its costs will be much lower.

As a result, it will be closing its Eagle factory in Hanley and Alexandra site in Tunstall.

'No effort'

The company says its Wedgwood brand, which includes earthenware and fine bone china, will not be affected and production of earthenware will be moved to another factory in Barlaston.

Speculation had been growing among workers at Wedgwood after some were told to go to a meeting at the TA centre close to Wedgwood's Eagle factory on Wednesday.

The message to the government is they can't go on letting Stoke-on-Trent lose jobs without bringing their jobs into the area
Stoke-on-Trent mayor Mike Wolfe

Tony O'Reilly Jnr, chief executive of Wedgwood and Johnson Brothers, said the company had to take action to preserve the brand.

"Clearly as a business, it is unsustainable to not be able to generate sufficient return and Johnson Brothers business would not be able to keep going in the current form.

"The decision was taken to ensure the long-term viability of the brand."

But Mark Fisher, the Labour MP for Stoke-on-Trent Central, said he was "horrified and angered" by the news.

He told BBC Radio Stoke: "Unlike other job losses in recent years, it appears Wedgwood have not made a single effort to try and save these jobs for north Staffordshire.

"They have not come to the city council or the government or the European Parliament to at least explore the possibility that any of these job losses could have been avoided or even kept in this country."

He added: "That lack of concern for the community is breathtaking."

'Serious blow'

Workers at the affected factories were devastated by the news.

One said: "We are absolutely gutted but what can you do?

Wedgwood pots
Production of earthenware will be moved to another factory

"We saw it coming. Women are crying and its really sad down here at the moment. I just want to go home."

Another said: "Why call it the Potteries? All the industry is closing down."

The city's elected mayor, Mike Wolfe, said he was more determined now to bring new business to the city.

"This is a very serious blow but it is not a blow that is going to knock us down.

"I have come down to the factory to express my support and sympathy for the workers but what we have to recognise is that the pottery industry is still very strong and Wedgwood is still investing in Barlaston."

Pre-tax profits

He added he would now be putting pressure on the government "at the highest level" to relocate a governmental ministry to the area.

"The message to the government is they can't go on letting Stoke-on-Trent lose jobs without bringing their jobs into the area."

Reporting annual results for the year to 31 March, Waterford Wedgwood company moved back into profit with a rise to �46m (64.2m euros) at the operating level.

But the company said sales had fallen 4.6% to �682.1m (951.3m euros) from �715.3m (997.6m euros) in 2002.

That left pre-tax profits of �5.2m (7.2m euros) at bottom line compared with losses of �38.3m (53.5m euros) last year.


WATCH AND LISTEN
The BBC's Liz Copper
"Wedgwood says the job cuts are vital for the survival of its brands and the company"



SEE ALSO:
Profits slump at ceramics firm
06 Mar 02  |  England
Ceramics group to cut 1,400 jobs
07 Nov 01  |  Business


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