North East manufacturer Formica is planning to make around 30 members of staff redundant at its site in North Shields, according to the GMB union.
Union representatives have been told that Formica is planning on making between 20 and 30 roles redundant on the shop floor, while sources close to the firm have also said cuts are being considered within the firm’s 12-strong IT department.
The factory also employs a number of temporary workers and it is feared that these contracts will not be renewed under the company’s restructuring plans.
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GMB has been informed of the plans by staff members working at the North Shields factory.
Michael Hunt, GMB regional organiser, is planning to visit the factory this week to discuss the redundancy plans with staff. He is also hoping to sit down with Formica’s senior management team to discuss the restructure.
Staff were originally informed of the company’s proposals two weeks ago but little more has been revealed about the plans.
Formica has declined to comment on the reports.
Mr Hunt said: “I am going down to the factory on Wednesday. It seems to have stalled really, as far as we are aware.
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“We have a number of shop stewards on site and none of them have had any further talks with the company. Since last week, absolutely nothing has been said.”
Mr Hunt added that if cuts do go ahead, temporary workers should be let go first and if possible voluntary redundancy should be offered to workers.
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Staff at Formica had recently been preparing to take industrial action after union members fell into dispute with management over pay.
Workers at the manufacturing plant overwhelmingly voted in favour of going on strike in November, with members of both the GMB and Unite unions backing the plans.
Staff had asked for a pay rise in line with inflation but had been offered a 1% increase and a two days holiday over Christmas, with the latter only being available in 2019.
The strikes were postponed, and ultimately cancelled, after the unions managed to negotiate a multi-year deal with Formica, which led to staff receiving a 1.5% increase each year, as well as the two days holiday over Christmas.