Fairline announces more redundancies

1:47 AM Tue 16 Dec 2008 GMT

'Targa 74 - Fairline' Faiirline UK

Citing the global economic crisis as the cause, Fairline Boats has announced 275 redundancies at its Oundle and Corby production and administration sites in the UK.

The job losses will take effect in March 2009.

In its official statement, the company reported that ongoing global financial and economic conditions continue to affect demand for luxury products across many industries and regrettably, Fairline's products are not immune from these effects.

In September Fairline announced 90 redundancies and subsequently, short time working on a number of production lines. This latest announcement will reduce the current workforce to 1,000, but full time working will be restored on all production lines with effect from January 2009.

The government's heralded 2.5% VAT slash seems, unfortunately, not to have galvanised the luxury boat market. The simultaneous dive in sterling, however, seems to offer a ray of hope for exporting companies like Fairline.

'The most positive opportunity we face is the pound and the euro are headed towards parity,' said CEO Derek Carter. 'This will be beneficial as we move into 2009 and our objective is to match our business to what we perceive to be the market in 2009.'

Mr Carter is still forecasting a return to 'normal' trading in Q4 of 2009. 'I think in the first six months of 2009 the industry is likely to stabilise, and then we come back into the buying season with Southampton, Genoa and Cannes.'

By that time, said Mr Carter, the world will have been in this situation for 18 months. 'So Q4 of 2009, then Q1 of 2010 we'll probably see some kind of uplift,' he said.

Mr Carter agreed the timing of these latest redundancies is unfortunate. But, he said, we have commenced discussions with union representatives to identify the redundant positions that will take effect in March.

'The unions have been very understanding and I couldn't have wished to have a better union representation than I already have. We will do all we can to minimise the anxiety of affected employees.'

At its peak Fairline employed close to 1400, but the company is now down to around 1000, which means output will be cut to 200 boats in 2009.

'More importantly, we're going back to full time working. Part time working is - inevitably, inefficient.'

'The cuts we have made will now set up a permanent structure for the company and if business picks up, some of our first calls will be to those who have left the business.'

More at www.fairline.com

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