海角视频 manufacturers have called on the Government to extend the job retention scheme by six months as they warned of job losses “on a scale not seen since the 1980s”.
Following a raft of job losses among North East manufacturers, trade group Make 海角视频 said the Government should extend the furlough scheme after its research revealed that more than half of firms in the sector plan to cut jobs by the end of the year.
It called for an extension of the scheme for strategic industry sectors to protect highly skilled jobs as the coronavirus pandemic continues to cast a shadow over manufacturing.
The call came as the organisation’s latest survey revealed the number of companies planning to make redundancies in the next six months has risen to 53%.
It said this represents a continued sharp rise in firms’ intent to cut jobs over the past two months, rising from 25% and 42% in the two previous surveys.
The automotive and aerospace industries are among those most at risk, with companies in those sectors in the North East having cut jobs.
The Nissan plant in Sunderland and the nearby Envision AESC battery plant have cut jobs in recent months, along with British Engines, Gestamp Tallent, Gardner Aerospace and ADM Pressings.
Stephen Phipson, chief executive of Make 海角视频, said: “There is no disguising the fact these redundancy plans make for very painful reading.
Most Read
“As well as the distressing personal impact on livelihoods across the 海角视频, industry cannot afford to lose these high-value skills which will be essential to rebuilding our economy and investing in the industries of the future.”
Make 海角视频 said that almost a third of companies (32.3%) are planning to make between 11% and 25% of employees redundant.
It also reported that the proportion of companies expecting a return to normal trading to take 12 months or longer has risen from just under a third in the previous survey to 42%.
Mr Phipson added: “At present, the prospect of a V shaped recovery for industry seems remote.
“Therefore, if we are to mitigate the worst impact of potential job losses, Government must extend the furlough scheme for key strategic sectors to provide them with vital breathing space.
“In addition, Government should consider measures similar to those introduced by competitors to boost demand in the aerospace and automotive industries in particular.”
The call for support is the latest plea to come from business groups, and follows similar reports from the North East England Chamber of Commerce and the TUC.