Windows business forced into making 25 redundancies
Burnley-based uPVC windows firm VEKA has made 25 members of staff redundant following a consultation process announced in June.
The German family-owned firm said it was launching a consultation process which could result in job losses among its 400-strong workforce.
It said following the factory re-opening after lockdown it was clear the business would not bounce back to its pre-COVID-19 levels.
Management said that, having taken all available actions to ensure VEKA remains a successful and sustainable business, the effects of the pandemic resulted in the business failure of two important customers which had a substantial impact, forcing the business to review its ongoing requirements.
Managing director, David Jones, said: “Having started the process on Monday 15th June, establishing an employee-elected committee responsible for taking group redundancy consultations, we have followed it to its conclusion.
“Fortunately, throughout the process, working with our committee, we were able to reduce the impact from an estimated redundancy of 78 roles to 25.
“This equates to 6.5% of our workforce and reflects the new scale of the business.”
The redundancies were managed in a phased manner, with phase one relating to roles that the business could not foresee, and short-medium term relief from the impact of the COVID-19 pandemic.
Phase two were roles that were dependent on seeing a positive sales upturn in July, and, due to a strong result in July and a more positive overall industry outlook in the coming months, the company said it no longer needs to proceed with phase two redundancies.
Mr Jones added: “This isn’t the first time that VEKA plc had to make some tough decisions in order to weather a storm and I recognise that COVID-19 continues to impact communities and may, in turn, have further impact on business.
“Although I’m saddened that this has resulted in losing valued employees, by adapting and acting responsibly to ensure the sustainable success of the business, VEKA plc is not just here for now, but for the future and for life.”