Yet another sad day for jobs in the NE. I believe this company did a similar trick in Scotland a couple of years ago, and relocated to the NE, taking advantage of grant finance to do so. This announcement has been expected for some time, but the loss of another 900 jobs is another cruel blow for the area.

Viasystems to axe nearly 900 jobs
LONDON (Reuters) - U.S. electronics manufacturing company Viasystems plans to cut nearly 900 jobs in North-East of England, the Amalgamated Engineering and Electrical Union has said.
Viasystems will close its Longbenton operation in North Tyneside with the loss of 550 jobs, while around 325 jobs are set to be axed from a factory in South Shields, South Tyneside, a union spokesman told Reuters.

-- Anonymous, September 03, 2001

Answers

unfortunately i know a lot about this and it really is a vipers nest of tossers and vultures who don't know their arse from their elbow and who are paid millions a year....

the company that owns the north and south tyneside facilities WILL go into receivership this week and its a fu....g disgrace...

myself and a group of other people have been working 24/7 for about three months now trying to rescue the situation and everyone has been shafted by a group of self serving arsewipes based in St Louis...

interestingly enough the uk company (viasystems tyneside) has strong links to the usa company (viasystems) and was once owned by them but has not been owned by them for nearly 18 months and the media have not realised this...

i feel sick to my stomach about what has happened and what is going to happen later this week....

-- Anonymous, September 03, 2001

Sorry to hear about your direct involvement, Bertie. My very best wishes go to all the people affected by this action - good luck.

-- Anonymous, September 03, 2001

They did exactly th esame in the Borders. Keltech (I think) was slowly built up over the years, with good local management.

Viasystems bought them as part of their global expansion, then global contraction. Again enticed in by grants. They then just bled it dry and closed it. Real bunch of bastards in the States who just din't care what it was doing to a fragile economy.

There ar eenough US companies in Scotland who try, and struggle and stay that we know it's possible, VG are just heartless bastards.

-- Anonymous, September 03, 2001

... one of the 'benefits' of globalisation I'm afraid.
I can see another big soap-box looming!

-- Anonymous, September 03, 2001

Donīt wanna appear heartless but any manufacturing business serious about making money (as opposed to less profitable concepts such as corporate citizenship) is going to chase the best carrot dangled in front of it by the plethora of national and regional governments vying for it to relocate within its boundaries. As soon as the contracted period of tax and other breaks expires then naturally you donīt see them for dust as they move onto pastures new, preferably ones with lower wage costs. Itīs the ugly face of capitalism but surely it shouldnīt come as a surprise to anyone involved - always an unpleasant shock when it does happen though.

-- Anonymous, September 03, 2001

I simply can't believe this.
6 or 7 years ago I was involved in the massive expansion of the South Shields site. 12 hour shifts ran though a number of summers. A new circuit board line was being installed. Personally I did OK out of this and I really enjoyed my time there. The Viasystem electricians became good mates of mine. They’ll be fine but a fecking sickener for them all the same.
Good Luck lads.
Similarly for four months I worked on the Wallsend Siemans plant – 12 hours a day 7 days a week – I was knackered but the work had to be done, so I did it. I was finished on the Friday and the powers that be shut the place down that weekend, unbelievable.
Sometimes I just don’t understand the world.

-- Anonymous, September 04, 2001

no offence heednhands but don't come and work at my place please! ;-(

-- Anonymous, September 04, 2001

LT, the Viasystems approach is far more sinister, and sad.

Some US companies have come in, taken grants, built new sites then done a runner. Wang were the most famous ones in Stirling in the late 80s, just so obviously a version that you describe.

The Viasystems approach in the Borders was to buy a going concern, a totally viable wee company who weren't looking to compete globally but were serving 'Scottish' electronics well. Viasystems bought them as part of their globalisation, an easy means for them to get into Scotland, no start up costs, in and running. They did this in a few places, as well as start ups. They then closed the factory. This was in response to their shortfallings in the global market and their need to consolidate.

Scotland then loses an indigenous manufacturer, something it desperately needs. The Borders loses a thousand manufacturing jobs it just can't cope with losing. The US bosses hide for a while then just forget about it.

-- Anonymous, September 04, 2001

... doesn't make "the ugly face of capitalism" any more palatable, LT - especially if you're one of those directly affected.

These b@st@rds took Ģ17mm of UK taxpayers money in grants and are attempting to do a runner with it - THAT is wrong, and they should not be allowed to get away with it. Scumbags!

-- Anonymous, September 04, 2001

Agreed, palatable it certainly ainīt. Inevitable it certainly is was the only point I was making. Like when I switch from a bank to a building society when the latter offer me cheaper accounts for a while, then switch again when their incredible generosity(!) is overhauled by anothers - same principle, just different scale and therefore impact. As someone who has been required to make too many people redundant over the years my fullest sympathies go out to the employees and their families. At the same time my fullest ire is directed at the powers that be that continue to facilitate - never mind oppose - business in riding roughshod over peopleīs lives. And thatīs without knowing what sort of separation packages the workers may or may not have been granted.

-- Anonymous, September 04, 2001

(Exclusive) company to be sold to Alchemy within next 24/48 hours at least some jobs saved.... future still not massively bright though....

-- Anonymous, September 06, 2001

One of their lads has come to work with us, he was put on a two day week and forced to take unpaid leave, he came to us to work the other five days then decided to cut his losses and come full time.

We were involved in refurbishment of South Shields, Boldon and in the building of Site 2 at Longbenton. Longbenton was built to accomodate future expansion a massive building with vast empty bays partially used for storage.

-- Anonymous, September 06, 2001

bertie,

I would think Alchemy's involvement could be a positive move. They are really hard-headed businessmen; however, they are also highly professional.

I would think they will look to cut/hack down the business to something that has a good chance of being run profitably - and then sold. This all sounds rather negative, but in the prevailing circumstances is almost certainly the only approach that can save any jobs at all. Good luck to you all.

-- Anonymous, September 06, 2001

As of today Alechemy have pulled out. Company in receivership by the end of this week.

-- Anonymous, September 10, 2001

Sad, just very sad.

-- Anonymous, September 10, 2001