Devon-based tile manufacturer, British Ceramic Tile, has announced that it will begin a 30-day collective consultation process with its Employee Forum Representatives on its proposals to change the current seven-day, 24-hour shift pattern, to a five-day, 24-hour shift pattern. The proposed new shift pattern would reduce the number of shifts from four to three. In a statement, British Ceramic Tile says:
"As a consequence, it is with considerable regret that these proposals may result in 69 manufacturing jobs being made redundant. The purpose of the consultation will be to discuss the proposed shift pattern changes, and as a consequence of this necessary change, ways of avoiding or reducing the need for redundancies, which will include agreeing criteria on which any selection for redundancy will be based and to offer any other assistance or support.
As many of our stakeholders are aware, the company is well advanced in a further phase of investment in production equipment primarily in the form of a new kiln. The decision to make this investment was taken a number of months ago based upon a more favourable economic outlook than has proved to be the case.
Market conditions have continued to be at least as difficult as they were in 2010. The additional capacity provided by the new kiln will allow production of sufficient tiles to meet current market demand with fewer shifts and, as the company needs to reduce its cost base, it now proposes to reduce the number of shifts to bring them in line with current production requirements.
The company is also assessing potential changes in business support and sales functions to align the structure with the new operating levels. Regretfully a review of these areas has highlighted potential reductions in staff levels equating to a further 17 roles being made redundant subject to consultation.
The installation of the new kiln and associated equipment will be completed, as it will provide much needed flexibility to production.
Matthew Gazzard, CEO, British Ceramic Tile, says: “Since the further phase of investment in production equipment began, market conditions have proven to be worse than expected. Despite the best efforts of the company, it is with considerable regret that we are entering into a collective consultation process with the Employee Forum Representatives.
“As the company is proposing to make 20 or more (but less than 100) employees redundant, no redundancy dismissals will take effect until the minimum period of 30 days has elapsed from the date consultation starts, which is scheduled for Wednesday 22nd June 2011. Please note that no decisions have yet been taken and will not be made until the consultation period has been concluded.”
