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28/01/2010

Britain - 'We'll do what we can to stop mass job losses'

Will Stone

The GMB union warned on Thursday that home shopping group Shop Direct's decision to axe 1,500 jobs at three of its centres is a "devastating blow" to local communities.

Shop Direct, the company behind Littlewoods, Kays and Woolworths, announced plans on Thursday to ditch the jobs at its centres in Sunderland, Burnley and Newton.

If the job cuts go ahead it will mean the closure of all three centres and, in Sunderland, the loss of a staggering 900 jobs.

General union GMB said the cuts would have disastrous consequences for local communities in areas of high unemployment.

GMB Northern regional officer Mick Hopper said: "GMB members employed by the company are devastated by this news from Shop Direct.

"We have been in negotiations with the employer over a long period to arrive at work practices and terms and conditions of employment to ensure the success of the company.

"This announcement is a body blow in an area of very high unemployment. We will be seeking help from elected representatives and other government agencies to see what can be done to save jobs."

The union said it would do everything it could during the 90-day consultation to lessen the impact of the planned cuts.

Labour's prospective parliamentary candidate for Sunderland Central Julie Elliott said: "This is very sad for all the workers and families involved and a harsh decision from Shop Direct.

"I will be doing everything I can to help protect the jobs at the site, as most of the people who work there have lived in Sunderland all their lives and have come to work there straight out of school."

Shop Direct chief executive Mark Newton-Jones stated that a surge in online sales has had an impact on profits from the centres.

He said: "Over the past five years, the proportion of our online sales has grown from 18 per cent to account for over 60 per cent of our business today resulting in excess capacity and space in our contact centres.

"We are a strong and growing business and we need to adapt to reflect the way our customers choose to shop with us."

http://www.morningstaronline.co.uk/index.php/news/content/view/full/86165

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