Double whammy

News of the job cuts at the Imperial Home Dcor site at White Lund came on the same day that Lancaster's Acordis Cellulosic Polymers operation announced plans to close in September, shedding 121 jobs.

The home dcor group, which also has a site in Darwen, went into administrative receivership last Friday, blaming a fall in demand for wall coverings.

But the receivers Ernst and Young LLP - brought in to find a buyer for the business - have upset workers, union officials and the local MP with their handling of the situation.

Tony Burke, of the Graphical Paper and Media Union (GPMU), claimed the receivers had announced the 22 job cuts - 177 at Darwen - without consultation, which he said was against employment law.

He says the union is considering legal action against the receiver for failing to consult about the redundancies.

And it will also take 'the necessary steps' to ensure members are paid what they are entitled to, he says.

Mr Burke labels the handling of the situation as 'ruthless' and adds: "The general feeling of the workforce is one of immense anger and disgust at they way they have been treated. We have whole families working in this business who have given their lives to the company. To be so shabbily treated is appalling."

Morecambe MP Geraldine Smith says the job cuts were made in a 'cold and callous fashion' and intends to table an early day motion in Parliament expressing concern about the situation.

"It is unacceptable the way the receivers have dealt with this. I have left calls with them which have not been answered. If they won't consult with the local MP what chance do the workers have?" she asks.

But Ernst and Young spokesman Eleanor Harvey defended the action taken, saying different legislation came into force when receivers were appointed as they were working against the clock to secure the business and had to make decisions very quickly.

"This is very difficult for the employees but the receivers are trying to secure the best possible outcome for as many of them as possible," she says.

"Nobody messes around with people's jobs or lives in a cavalier way. They will be making a business decision which will be well thought out. These things can move and change very quickly - we can't guarantee there won't be more job losses."

A shop floor worker told the Citizen: "Morale on the shop floor has been very poor and the atmosphere now is a mixture of fear, apathy and optimism. We are holding out hope but not holding our breath."

Cllr Abbott Bryning, Lancaster City Council's Cabinet member for regeneration describes the news as 'worrying' but adds: "It is early days and the firm has not closed yet. We will do all that is possible to assist the receivers in protecting the company and the jobs it supports."

The decision to close Acordis Cellulosic Polymers by September was blamed on significant and heavy losses in the face of aggressive overseas competition and falling demand for photo-film as digital technology takes over.

Lancaster MP Hilton Dawson says: "It is a terrible blow for all those people and their families and a very serious setback for the City."

He says the priority will be to try and rescue any part of the existing business because the city is in a 'very weak' position with regard to large-scale manufacturing employers.

Lancaster City Council has arranged a meeting with the North West Development Agency and Job Centre to see what support there is for workers.

Council Leader Cllr Ian Barker says: "The council will be redoubling its efforts to bring forward new projects to provide land and premises for expanding companies who can offer alternative employment."

Lancaster District Chamber of Commerce president David Taylor says the Chamber has offered its support to Acordis employees, and adds: "The Lancaster District has grant aid to regenerate businesses in the area and we need to be ensuring that adequate support is given to new young businesses and to encouraging others to come into the district."