Michelin to lay off 90 at Dundee plant in January

By Mark Gertskis.

London - Michelin is seeking 90 voluntary redundancies at its Dundee factory but plans to invest in the Scottish facility over the next three to five years.

Michelin Dundee's personnel manager Ian Peart confirmed that about 90 tyre-making employees would be made progressively redundant starting from 3 Jan as the factory changes its shift working system from five to four teams.

The change in team operations, and the subsequent lay-off announcement, was tied to a decision by the French tyre manufacturer to keep annual production at the factory at the 2006 level for the next three to five years.

Peart also revealed that ''a significant investment'' would be made in the plant during that period, but could not confirm exact details yet. Sources close to the deal suggested the investment was worth about £20 million (Euro 30 million) over five years.

Peart said the lay-offs were being implemented to ''ensure the plant is operating productively and effectively'' and stressed that no forced redundancies would be imposed on the workers.

''There are opportunities for voluntary redundancies and we are looking for volunteers to work in other factories outside the UK where there is growth,'' he said.

Peart said he could not foresee any more lay-offs.

Union spokesman Colin Cooper confirmed that there would be no forced redundancies, adding that those who chose to retire early would get severance pay and a reasonable pension. The bigger question, he added was over the future of the plant. He said it was good that Michelin was investing in the plant, but the investment were never going to lead to more jobs at the factory. he said the number of employees had fallen from 900 or so to about 600 production workers.