Factory to go with loss of 264 jobs

The job crisis in Walsall deepened this week as 264 workers at GKN's Aldridge plant were told they faced redundancy.

Staff at the car components manufacturer were told the Middlemore Lane West plant would close as part of a national loss of 564 jobs.

The news came as unemployment in Walsall soared to its highest level in more than a decade as the Department of Works and Pensions revealed that 9,006 people claimed Job Seekers Benefit in January this year.

GKN staff were told the Aldridge plant will shut down by June next year when production facilities will be transferred to the company's Erdington factory in Birmingham.

A spokesman for GKN said at that time 129 Aldridge workers could apply to transfer to Birmingham, but in the meantime 135 staff will go.

The news was described by the long serving Aldridge Brownhills Conservative MP Richard Shepherd as a 'blow' to the town.

"It's been there since before I was elected an MP and it's a tragedy for all those who are to be made redundant," he said.

"It's a reflection of the meltdown in the automotive industry."

The job losses are the latest in a series to hit Aldridge firms including Bolton Brass in Middlemore Lane, Best Value Conservatories and Amtrak, which saw 700 jobs go.

Mr Shepherd criticised the Government for focusing too much on banks and said it must step in to halt the loss of manufacturing jobs.

"This is about real jobs, real employment and real wealth that we are seeing going.

"I profoundly believe that we have to keep skilled jobs in the British economy for when we eventually recover, otherwise we are left with nothing," he added.

A statement by GKN said the job losses were regrettable but necessary. GKN automotive chief executive, Nigel Stein, said: "We are in unprecedented times and we must protect our position as a leading global automotive supplier and ensure we are in a strong position to meet our customers' needs now and when markets recover."

In the six-month period between July 2008, when 5,844 people were out of work and claiming benefit and January 2009, the number of unemployed people in Walsall rose by more than 3,000.