Industries call for action to retain skilled workforce (From The Northern Echo)

Industries call for action to retain skilled workforce

1:04pm Wednesday 12th August 2009 in

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AT least 1,000 highly-skilled jobs have already been lost in the supply chain to Teesside’s chemical industry as a direct result of the current plight in the sector, it was revealed last night.

The loss of the jobs from six engineering companies – and further losses predicted at others in the near future – was said to show the “severe and immediate impact” the closures of the Dow, Croda and Elementis plants, and the continuing doubts over the future of Artenius, are having on other companies in the area.

And last night, the North- East Process Industries Cluster (Nepic), Tees Valley Engineering Partnership (TVEP) and 60 companies in the chemical sector supply chain, called on the Government to take urgent action and provide financial assistance to support chemical companies on Teesside.

Calls were also made for Business Secretary Lord Mandelson to visit the region “as a matter of urgency” to understand how vital it is to sustain the sector, which generates £10bn to the regional economy and employs 40,000 people.

A further 44 investments for a total of £6bn are currently being pursued for the North- East by 2015-18.

In a letter to Lord Mandelson, the Government is urged to:

● Set up a £48m process sector upgrade fund to enable companies in the sector to improve their capacity and capabilities, a scheme which is anticipated to safeguard about 100 engineering jobs;
● Introduce cashflow support for process businesses, to help sustain businesses like Artenius, where a profitable site is struggling due to issues with its parent company;
● Contribute £2m over the next two years to ensuring apprenticeships and graduate trainee schemes are maintained;
● Help to ensure equality in European energy pricing – currently, UK businesses pay the highest prices in the continent.

In the letter to Lord Mandelson – signed by Nepic chief executive Dr Stan Higgins on behalf of Nepic and TVEP – he is urged to meet with regional representatives to devise a strategy to see them through the next two years.

“The effect on six Nepic and TVEP companies alone, which is just a sample of the 60 engineering companies in our community, has resulted in the release of 1,000 highlyskilled engineers,” the letter said.

“Please note that we are expecting to have to announce further job losses in the very near future – it is therefore imperative that we work to retain the future of this skilled and talented workforce.”

James Wharton, Conservative Parliamentary candidate for Stockton South, was yesterday shown a copy of the letter, and said: “Lord Mandelson needs to visit the Tees Valley as a matter of urgency to meet with the key businesses that will secure our future.

If he does not act now it could soon be too late.

“This is evidence from the businesses themselves that the Government is not doing enough to support our engineering and process industries.

“This sector of the economy has specific needs and if we don’t take action to ensure their continued success more and more jobs will go abroad.”

The Dow and Croda sites, on Wilton, which together employ almost 200 people, announced their closures last month.

Elementis, in Eaglescliffe, closed in June with the loss of 135 jobs.

Artenius was put into administration with the immediate loss of 137 jobs two weeks ago, and the remaining 105 positions remain in doubt until a buyer for the Wilton site is found.