News

Union leaders are pessimistic about the future of AGI Media Europe's Birmingham plant, which is set to close as the firm moves CD and DVD packaging production closer to clients in continental Europe.

The move, announced in December, could lead to the loss of 140 jobs.

Amicus national officer Vernon Robson met with AGI Media Birmingham's management team in the week before Christmas to discuss whether jobs could be saved, but admitted the plant was "likely to close".

Andrew Scrimgeour (pictured), AGI Media's UK managing director, said the closure was "awful" from a personal point of view but was "the right thing to do" from a business perspective.

AGI, part of US firm MeadWestvaco, will continue to produce work for UK clients from its Slough and Swindon plants.

Meanwhile, as Packaging News went to press, there was no sign of an end to the dispute between Amicus and Chesapeake over changes to terms and conditions at the group's Field Packaging sites in Bradford and Newcastle.

Strike action began on 13 December and is scheduled to take place every Wednesday indefinitely with a one-hour stoppage on every shift. An overtime ban is also in place.

Amicus national officer Vernon Robson said the situation had been inflamed by the dismissal of 10 staff at Bradford before Christmas for refusing to sign the new terms.

But Bob Houghton, Field's group marketing and communications manager, said the new terms were agreed with employee representatives earlier in the year.

"A 2.5% pay increase for 2006 formed part of this agreement, as do guaranteed increases for 2007 and 2008. Regrettably these were initially rejected in a ballot of Amicus members," he said.

The company subsequently wrote to all employees asking them to accept the new terms. Around half did so and immediately received the agreed increase.

"The changes are critical to the future of the business," said Houghton.