Unions condemn job losses as Eaton switches production

UNION leaders have condemned moves by a Birmingham manufacturer to switch part of its operation abroad, threatening the jobs of 140 people.

Eaton, parent of Eaton Electric in Tyseley, formerly Midland Electrical Manufacturing, announced earlier this month it was planning to outsource production to Romania and Malaysia in an attempt to reduce costs.

A 90-day statutory consultation with staff and unions is taking place but job losses are thought to inevitable.

Unite, the UK’s largest union, said the move was generated by “pure greed” and has urged the company to reconsider its plan.

In a statement, the union said the move would mean all the products produced abroad would still carry the Midland Electrical Manufacturing brand but its connection with Birmingham would be lost, along with the high value manufacturing jobs.

Unite regional officer, Tom Keogh, said: “Our real wealth is in manufacturing and we cannot allow manufacturing to leave this country at the alarming rate it is being allowed to, at the hands of global multi-billion dollar corporations in their pursuit of greed and bigger profit margins.

“We believe this closure to be driven by greed and totally unnecessary, not to mention the detrimental impact it will have on the 140 staff who work there.

“We are urging the company to take a serious look at alternatives. Some employees have been with the company for over 30 years and the loss of these highly skilled jobs will have a massive impact on the local economy.”

He said the decision was a kick-in-the-teeth for workers at the Reddings Lane plant who had lead to believe there was a long-term future at the factory.

“Those hopes have been dashed by what now appears to have been a cynical strategy to centralise work in eastern Europe and Asia, irrespective of the loyalty and commitment of their dedicated workforce,” added Mr Keogh.

MEM has been manufacturing power distribution products in Birmingham for more than 100 years. The company was founded by William Barber in 1908 and the operation has been based at Reddings Lane since 1928.

In 1973, the business was bought by the Delta Group, which sold the firm on 30 years later to US-based Eaton Corporation.

The company has said the decision to switch production was because of increasing competition from lower cost rivals.