Support system will cushion the blow for skilled workers

THE closure of any factory is a dark day, so the loss of County Dur-ham's biggest private employer was rightly regarded as one of the darkest.

There are fears that LG Philips Displays closing its Durham plant will significantly damage the local economy - its 761 employees represent two per cent of the city's overall employment figures.

But filtering out from the factory this week has been a strong message of hope.

The words "multi-agency task force" may sound trite, but the group charged with finding jobs for the workers is more than local politicians paying lip service.

There is a real feeling of optimism around a table that includes Durham County Council, the North East Chamber of Commerce (NECC), JobCentre Plus, and the Amicus union.

Paul Beasley, the plant's human resources manager, said: "We have a big task to get 750 people into jobs, but we have the best possible support we could ask for here."

Carol McFarlane, Amicus regional organiser, said: "The majority of the workforce has known for some time that the jobs would be lost.

"Quite often, when a company closes, there is no help available for retraining, or even a redundancy package.

"So we are pleased with what is being done here."

So far, £785,000, more than £1,000 per employee, has been pledged by the Government and Philips, to help staff either find work, retrain, or receive financial advice on retirement plans.

An on-site job centre will open at the end of next month and will remain there until September - two months after the factory closes.

Right Coutts consultants have already begun the process of interviewing workers, then tailoring a package of support or training.

Some will retire, but others are already aiming for new careers as fork-lift truck drivers, plumbers or computer programmers.

Andrew Sugden, NECC head of policy, said: "Both the workers and LG Philips as a company have a cracking reputation. Well-qualified and highly-committed workers are always in demand."

And there are jobs available to be filled. At the last count, JobCentre Plus found 9,900 vacancies within commuting distance, including 1,200 in the engineering sector.

"It is obviously a blow to Durham to see a flagship employer like LG Philips leave the area," said Mr Sugden.

"But it should not be seen as an indicator of the buoyancy of the North-East economy.

"There are very specific reasons why this plant has to close and they are no reflection on how it has been run, or the calibre of the workforce."

Plant director David Coppock said: "The reaction of the workforce has been first class. The day after the announcement, everybody turned in for work and the plant has operated as normal ever since."

The redundancies are across the board - even Mr Coppock and his management team will lose their jobs.

"We are all in the same position," he said. "We have got to do a professional job here and our first thoughts are for the workforce.

"I think it helps that they know we are all in the same boat and there is a tremendous sense of camaraderie here."

The 44-year-old has spent most of his career with Philips.

"It feels like the end of an era for me. After the announcement, when the dust had settled and I came down off the adrenaline, I felt really low.

"I have two young mouths to feed and I need to look after them."

He is in good hands with Right Coutts, which has an excellent track record in the region.

The company was brought in for the closure of the sister plant in Washington, Wearside, and placed all 120 workers in training or jobs within six months.

Aly Douglas-Browell, from the agency, said: "It will be a challenge.

"The redundancies at Washington were phased and we were on site for 15 months. This time, there will be a large number of people looking for work all at the same time."

It is part of a sea change in how closures are managed.

A similar initiative at Samsung, near Sedgefield, County Durham, which closed last April, saw 80 per cent of its 425 workers in full-time training or employment within six months.

The loss of more manufacturing jobs and a skilled workforce in the region is always going to be a blow, however well cushioned it may be.

But perhaps the efforts to help LG Philips' staff are a sign that the bad old days of sudden closures and swollen dole queues are a thing of the past.

So why didn't they switch to LCD screens?

THERE was outcry from unions and local politicians when LG Philips Displays announced it was closing its plant on the Belmont Industrial Estate.

The company blamed the rise in demand for flat screen TVs and that the market for its old-style televisions is now in developing countries, such as India and China.

Both Amicus and Durham City MP Gerry Steinberg wanted to know why Philips had not invested in flat screen technology at Belmont.

But in reality, it was not that simple.

David Coppock, plant director, said: "The final product is the same, in that they both display an image. But that is where the similarity ends.

"It is like a car engine now, compared to one 40 years ago. It runs on four wheels, but under the bonnet it is completely different."

The Durham plant has made the cathode ray tubes (CRTs) used in traditional television sets since 1972.

Originally part of the Mullard group, the £10m plant was opened by the then Prime Minister, Edward Heath.

Dutch electronics company Philips took it over in the 1980s and it became the world's largest colour TV tube producer.

At its height, it employed more than 1,000 workers.

But by the late 1990s, bosses were aware of the advent of the flat screen technology offered by LCD or plasma screens.

The company set up LG Philips LCD, the first of two joint ventures with Korean group LG.

It was established in 1999 in South-East Asia and China, to look at the possibilities of the flat screen TV market.

At that time, the Belmont plant, known as Philips Components, was operating at full capacity, producing three million units a year.

In order to maintain its position as market leader, another alliance was formed and LG Philips Displays was born two years later.

The former Durham plant was its flagship factory.

A company spokesman said: "At that time, we were a flourishing CRT company.

"The plant was going very well and was very profitable.

"There was no need to invest in other technologies."

It would have been practically impossible to switch the Durham plant over to LCD production, said the spokesman.

The company estimated that, in order to do so, it would have had to close for at least 18 months, while old machinery was ripped out, new technology installed, and the workforce re-trained.

"It is a completely different industry," he said.

"It is like comparing apples with pears.

"You would have had to almost tear the buildings down and start all over again."