Goodyear: Cuts due to "extremely competitive" market

The latest threat of redundancies comes at the firm's car and light truck tyre plant in Wolverhampton.

Goodyear Dunlop said it needed to transfer the work to its other locations in the UK and Europe to remain competitive.

Andrew Harper, production director at Wolverhampton, said: "Following previous discussions, we advised our local and full-time union officials in February 2003 that cost competitiveness continued to be a major challenge in Wolverhampton, including the car and radial light truck business.

"We have been unable to make products at a competitive cost level in the UK despite increased productivity.

"This market is extremely competitive and is increasingly dominated by low cost suppliers from eastern Europe."

The firm informed the Department of Trade and Industry and the unions on Tuesday of its plans to cut production in Wolverhampton and that up to 420 staff could be affected.

A consultation process with unions and individuals will now run for 90 days.

James Bailey, manager of corporate communications, said 600 jobs would still remain at the site.

This is devastating news for our members and the city of Wolverhampton Cyril Barrett, TGWU

He said they were mainly involved in mixing and producing rubbers and compounds for other Goodyear sites, and farm vehicle tyre manufacturing.

He added the job cuts represented 10% of the company's 4,000-strong workforce in the UK.

Those working in Goodyear's Birmingham and Washington, Tyne & Wear, factories are not affected by the announcement.

But Cyril Barrett, Transport and General Workers' Union convenor, said: "This is devastating news for our members and the city of Wolverhampton.

"It unfortunately will not come as a surprise to Goodyear employees. Since 1997 about 2,000 manufacturing jobs have been lost at the Wolverhampton factory.

"The slow bleeding of jobs and skills has drained the lifeblood out of the Goodyear facility.

"I demand Goodyear management, the government and local government agencies join with the trade unions to work on a plan that can secure a future for part of the Wolverhampton factory."