Thomson Litho to cut 55 jobs at East Kilbride plant
GZ Media, the Czech company who bought printers Thomson Litho less than a year ago, has announced that nearly half its jobs in East Kilbride are to be cut.
Thomson Litho has entered into a 30-day consultation with staff at its East Kilbride headquarters, with 55 proposed job cuts. Despite the cuts GZ Media insists it is committed to the Scottish operation.
Thomson Litho, founded by late former Motherwell FC captain Matt Thomson, last year lost a lucrative contract with Microsoft to produce COA (Certificate of Authenticity) products enabling computer users to load Microsoft software. Microsoft materials are still produced at the company’s Czech factory however, and concerns have been raised as workers have watched some of the company’s machinery being dismantled and shipped to the Czech Republic.
The Glasgow Herald has reported one Thomson Litho worker as stating: “Our fear is that GZ’s plans are to close this factory and move its machines and remaining customers to the Czech Republic.”
Chief executive Gavin Letham has however dismissed claims that if the East Kilbride company was to win a big contract it would no longer have the machines or manpower to service it, saying: “The East Kilbride site is in a position to be able to increase sales.”
He added: “We have been here for over 40 years and remain committed to East Kilbride, and will continue to service our long-standing client base here in Scotland and further afield.
“In accordance with the performance management and monitoring procedures enforced within the group, utilisation of assets is constantly under review. As a result of under-utilisation, two machines have been identified which market intelligence has indicated will be better utilised serving local markets within the Czech Republic.”
With regards to the redundancies, Letham said: “It is with regret that we have announced a number of redundancies at our East Kilbride site. Current market conditions are difficult and as such we need to take measures in order that we can secure the viability and future of the site.”
Those affected by the redundancy plans are expected to be laid off by 1 March, with a worker commenting: “All the employees got the letter last week, and the company is asking for volunteers. But I don’t see that happening, because the redundancy terms have been reduced to the statutory minimum, and most of the people who work here have mortgages to pay and families to feed.
“This place has been open for 40 years. There are generations here, fathers and sons, mothers and daughters. The company keeps saying it is committed to East Kilbride, but none of us see that.”