Fresh job cuts at digger firm despite £14m military order

JCB has won two multi-million pound contracts – but they have not been enough to prevent further redundancies.

Last week, the Rocester-based firm secured an order to supply 42 wheeled loading shovels, manufactured at Earthmovers, in Cheadle, to one of the UK's leading scrap car auctioneers.

And on Monday, bosses revealed they had clinched a deal to supply the French military with a fleet of armoured backhoe loaders worth £14 million.

But just 24 hours later, the mood of optimism was dashed when it was announced 19 positions were at risk at one of its Chea dle plants following a slowdown in demand.

A JCB spokesman explained: "JCB Earthmovers has been insulated somewhat from the severity of the impact of the continuing global economic situation as a result of a number of recent large orders from UK and export markets.

"Earlier this year, JCB Earthmovers recruited 50 people who were at risk of redundancy from elsewhere in the group.

"Regrettably, JCB Earthmovers' orders for the coming months have not been sustained at the same level and as a result of that reduction the company has unfortunately briefed its workforce on the need for 19 shop floor redundancies, for which volunteers are now being sought."

A 30-day consultation on the job cuts began on Tuesday.

More than 1,600 workers have been laid off from JCB since this time last year.

The majority of employees returned to full-time working last month.

GMB union convener Gordon Richardson said: "It's very disappointing to hear more of our members face losing their jobs.

"The prediction is that we won't see any real upturn in the market until Spring 2010 and none of us will be able to relax until that happens."

Mr Richardson said the individual business units had been affected by the recession in different ways but a drop in orders at one factory tended to have a "snowball affect" on other plants.

He added: "While it is a positive that fresh orders are coming back, these contracts for the Backhoe Loader and Earthmover's divisions are just a drop in the ocean.

"At the peak we were building a machine every seven to eight minutes. We are still nowhere near that level."

The specialist 4CX backhoes – which are painted in camouflage green – will be deployed by the French armed forces' engineer regiments in conflict zones around the world. JCB Sales managing director David Bell said: "There was an extremely long and detailed process to go through to win this business and we are delighted that the contract has been awarded to JCB."