Wyndeham in consultation at Roche over cost savings

Wyndeham has entered into a 90-day consultation with the 280 staff at its Roche facility as it looks to cut costs at the St Austell-based business.

Group chief executive Paul Utting said that the intention was to leave Roche with "a cost base that overcomes the inherent disadvantages of the West Country location".

He added that the management and staff were considering all options available in their bid to achieve the requisite savings. "It is up to those involved to decide which changes are most acceptable," he said.

"If we can complement the substantial investment in equipment made over the past few years at Roche, with an economical cost base too, then this business has a great chance to become one of the flagships of the group."

Utting strongly denied a claim by Unite national officer Steve Sibbald that staff had been approached with an offer of a 20% pay cut.

Sibbald said: "The company has made a proposal for a 20% wage cut, but our FOCs are telling us that it is just a proposal at this stage and it is unlikely that they will end up with a 20% wage cut."

Utting responded: "The group has not been prescriptive in deciding what measures are required. The local negotiating teams are likely to discuss a range of options including shift patterns, flexible working, manning levels as well as rates of pay."

However, the union has stated that it will be advising its employees not to accept any pay cut, which could "undermine the entire industry".

The union has said that it is prepared to enter into discussions with Wyndeham, but that it fears that it would ultimately amount to a pay reduction for employees at the plant.

Sibbald said: "As far as Unite is concerned we will be urging employees not to accept any cuts in terms and conditions. We hope they will stand up and follow that line, but ultimately it is their decision.

"If they were prepared to accept a cut it could send a death spiral through the industry and would undermine other chapels."

The consultation is the second at Wyndeham Roche in the past four months, after a 30-day process was launched in June over 58 job cuts.

l Elsewhere the union has all but accepted defeat in its battle with management at Wyndeham Impact, which was closed last week. Sibbald said Unite was still in dispute with the plant, but that "there is very little going on there so at some point that will have to end".