HALF the jobs at a Padiham firm are under threat as part of a major restructuring following a drop in sales, union bosses claimed today.

The jobs blow at pipe manufacturer Hepworth Building Products will take effect from the end of next month and will hit staff across the board.

Applications for voluntary redundancy have to be in to management by Thursday.

The jobs of 17 clerical and management staff and 44 manual workers out of a total staff of 122 are on the line, according to figures supplied by the firm to the DTI.

But the blow could be softened by the creation of up to three new administration and 34 manual posts in different departments and roles.

The Transport and General Workers' Union today said the company was also planning to switch from continuous seven-days-a week production to five days a week with a skeleton staff in at weekends and changes to the way its products are distributed through the country, with Padiham becoming a distribution centre for the west of Britain.

Joe Hall, regional industrial organiser with the TGWU, said: "We've a meeting next Monday organised with management to see what the situation is with volunteers for redundancy. We're not happy at the situation but if the posts are filled then it will be better than compulsory redundancies. "We've told the company that the changes in transportation have to happen if there's to be confidence among staff otherwise, given the sort of redundancies we've had in the last 12 months, we will end up in a situation with people asking if this is the beginning of the end. "We're hoping there's going to be a future for Padiham. If the company decides not to go ahead then we will have serious concerns for the future."

In a letter to staff, site director Tim Thompson said: "While it is extremely disappointing to have to take these steps, especially following our reductions in 1998, they are nevertheless essential for the site to continue operating."

The news has angered staff, particularly as parent group Hepworth plc, an international heating and building products group, last week announced an eight per cent rise in operating profits in the first six months of this year to £33.7million.

Last year 30 engineering and maintenance jobs were lost when Hepworth switched its maintenance contract.

The letter to workers by the firm said major changes were made last year at the Padiham plant to make the company more competitive.

"Although the changes went well in the circumstances we are now experiencing sales well below our expectations of our traditionally high tonnage products such as duct and the outlook indicates similar trends," it continued.

"Subsequently I am sorry to have to inform you that, in the interests of the future of the Padiham site, we must make further significant changes and reorganisation to reduce the enormous cost deficit we will be hit with this year and into the future if we do not react quickly."

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