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Last Updated: Sunday, 25 May, 2003, 09:09 GMT 10:09 UK
Store accused over job losses
Dewhirst factory, Pennywell
Two Dewhirst factories in Sunderland are to close
High street retailer Marks and Spencer (M&S) has been accused of sacrificing jobs in the North of England for big profits.

Union leaders made the claims as more textile job losses were announced on Wearside as a direct result of an M&S policy to source its products abroad.

Dewhirst in Sunderland says two of it factories are to close with 380 job losses.

The company is closing its two Pennywell factories and consolidating operations on one remaining plant in Hendon. All supply clothing to M&S.

The Wearside job losses come just days after 350 people were told they are to lose their jobs at the Sara Lee Courtaulds in West Auckland, County Durham, because of a similar M&S decision not to buy British.

Val Scott, from the GMB union, said: "Marks and Spencer is demanding lower prices from the manufacturers so they can sell things cheaper.

"They've revealed massive profits this week and you have to ask the question of whether Marks and Spencer have forced manufacturers into this position in order to achieve those profits.

It's wrong to say that we're fuelling our recovery by abandoning the British textile industry
Marks & Spencer

"With the demands on companies like Dewhirst, they have no alternative but to cut their overheads.

"How can you sustain a workforce with a minimum wage of �4.50 an hour when workers in Morocco get 40p?"

A Dewhirst spokesman said: "We have three factories in Sunderland that make men's suit jackets for Marks and Spencers but it's not sufficiently profitable for all three to stay open.

"We are planning to consolidate all three factories on to the Hendon site.

'Big slowdown'

"The two plants in Pennywell will close and that means 380 jobs will be affected on the three sites."

The GMB union accused M&S of squeezing UK suppliers in the same week it recorded pre-tax profits of �721m.

A spokeswoman for Marks and Spencer, said: "It's wrong to say that we're fuelling our recovery by putting prices down and abandoning the British textile industry.

"We're still in a situation where we've got to be very careful about the market and there has been a big slowdown in our clothing figures."

The Dewhirst group, which relies on M&S for around 90% of its sales, has moved more than 70% of its production overseas in recent years.

A Dewhirst spokesman said: "Marks and Spencer are driven by shoppers who want cheaper produce.

"Their suits are selling well, but less and less of them are being manufactured in the UK now."




SEE ALSO:
Rescue plan for textile jobs
22 May 03  |  Tees


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