JCB machinist Peter Wilkes takes part in a team building exercise during the JCB training initiative

Despite moves by JCB to up-skill its workforce through the biggest training initiative in its history, the UK-based construction equipment manufacturer has announced further job cuts.

JCB will shed another 684 jobs because of the lack of bank credit to fund machine purchases and continuing low market confidence. The latest job losses affect 593 shopfloor and 91 staff positions. JCB has cut 1,000 jobs from its 4,800 workforce since July.

The company expects production in the UK in the first three months of 2009 will be around 75% lower than at the same time last year.

Matthew Taylor, JCB's chief executive, says the company forecasted a moderate second quarter recovery in 2009. "This was based on governments around the world pumping huge amounts of money into recapitalising financial institutions and committing to stimulus packages that included significant spending on public construction projects.

"Two months later, despite the recapitalisation, customers are still struggling to buy machines because of a lack of available credit. Government-funded construction projects are not moving forward quickly enough and this means the anticipated second quarter recovery will not happen."

Plants at JCB's headquarters at Rocester, Uttoxeter, Cheadle, Rugeley and Derbyshire are all affected.

In October, Forkliftaction.com News reported on JCB employees' attempt to protect jobs by voting for a shorter, 34-hour working week (Forkliftaction.com News #384), but despite this vote, more job cuts were announced in November (Forkliftaction.com News #387).

Gordon Richardson, JCB's GMB works convenor, says while workers are looking at all options to challenge the proposed cuts, "the situation is looking extremely dire".

Forkliftaction.com News recently reported on JCB's plans to train its workforce with skills needed to survive the economic downturn (Forkliftaction.com News #391).

The training initiative has been heralded a success, with over 2,000 employees completing a four-day training course in early January.

Peter Wilkes, a JCB HBU machinist, says the training was a good idea. "Some of the training has been great for team building and working outside the box. I think it will stand me in good stead for my time at JCB and the qualifications I will gain will also definitely help."

Lee Finney, a cylinder machinist with HBU, says he was pleased to be involved in something that helped him improve his skills. "The qualifications will certainly help me and will help give the JCB workforce the edge. The training has gone well and I think working in a team environment will help me learn from others and improve in my job."

Ken Stepney, head of learning and development at JCB, says the company has been encouraged by the response to the training program. "In partnership with the colleges, we are equipping the workforce with the skills they need for the future. We are working to combat the problems caused by the economic downturn and readying ourselves for the opportunities a recovery will bring."