Tyneside firm Wellstream to make 200 redundant

Nov 18 2009 by Adrian Pearson, The Journal

TYNESIDE's historic reputation as a home of world class engineering could be lost as yet more highly skilled workers are made redundant.

That is the stark warning as oil and gas supplier Wellstream, one of the region’s most successful companies, announced yesterday that up to 200 staff will lose their jobs next year.

The company expects a tough 2010, despite signing a £600m long-term arrangement with a Brazilian oil company last year. Wellstream says it has difficulty identifying enough new work coming in 2010 to justify keeping its full workforce.

The job losses come just weeks after defence manufacturer BAE Systems announced 200 job losses, with union bosses warning the company could pull out of Scotswood Road, Newcastle.

City leaders in Tyneside have repeatedly pointed to long-term plans set to transform the north bank of the Tyne, with thousands of jobs predicted for the offshore wind energy industry.

But these jobs will take years to materialise, prompting fears a generation of talented workers could be forced to leave the region or accept jobs on much lower wages.

Union representatives say the latest jobs announcement was “far from unexpected” and warned of further bad news along the Tyne’s offshore industry.

Kevin Rowan, the TUC’s regional secretary, said manufacturing still had a “critical” role to play in the region’s economic recovery and urged city leaders to do their part in helping preserve the workforce.

“We know that Geordies are among the first to pick up their tools and move in search of work, but I think they do head back when the work is there,” Mr Rowan said.

“There are serious concerns that we are losing the skills that will help us grow in the upturn, but I’m optimistic that when the jobs investment comes in areas such as offshore wind turbine production that we will see those workers return.

“Yes, the more jobs we lose now the harder it is to replace those skills, but employers such as Wellstream and BAE Systems are aware of this and I think they are very reluctant to let workers go.

“They have done a lot to put this off and are not the sort to turn their backs on the region.”