Manufacturers across the South West are doing everything they can to retain both
jobs and skills.
A survey conducted by EEF, the manufacturers’ organisation, shows that
businesses in the region are among the most flexible in the UK when it comes to
trying to keep the skills they will need for the upturn when it comes.
According to Clive Turner, EEF’s South West Region External Affairs Advisor, the
survey reveals that manufacturers in the region are proving themselves to be
more open to alternatives to cutting jobs than in previous recessions.
“Firms have reported a range of strategies to avoid costly job losses – from pay
freezes and a limited number of pay cuts, to short-time working and temporary
production stoppages,” says Mr Turner. “Companies have learned the lessons of
previous recessions and are seeking to hold on to skills to ensure that they can
hit the ground running when the upturn comes. However, the longer the recession
goes on, the more difficult it becomes to sustain this position.”
Indeed, the survey shows that one in five of businesses are currently
considering making staff redundant. Mr Turner says this highlights the urgent
need for the government to provide assistance for companies to keep skilled
workers.
“A number of European countries have brought forward government-supported
schemes which provide a wage subsidy for employees on short time working.
Without similar support in the UK, foreign-owned companies are likely to look
less favourably at the UK when seeking to reduce capacity and headcount.”
The survey reveals that just 19% of manufacturers in the South West have
implemented a pay freeze compared to 36% of companies across the UK and almost
half have implemented a hold on recruitment. Around 15% of manufacturers in the
region continue to take-on new employees, 4% higher than the national average.
