SDC Ltd announced 370 agency positions to be axed
9:10am Tuesday 22nd January 2013 in News
Managers at DC Ltd, which is owned by the Japanese car giant, broke the grim news in phases as workers turned up for shifts during the day.
Honda announced two weeks ago that it is axing 800 out of 3,500 jobs at its plant in South Marston due to a slump in demand in Europe.
The latest jobs cull will not affect permanent staff at the distribution centre, which employs a total of 970 associates.
The temporary workers began six months ago when Honda stepped up production and they were hired with the intention that they would eventually be made permanent.
The cull will only leave 80 agency staff at the supply chain hub, part of the KeyPoint Development in Thornhill Drive.
Steve Gopal, the general manager at DC Ltd, said the cut was a devastating blow.
But he said events at the Honda plant left the firm with no other option.
Honda had forwarded a production plan to its logistics company showing that it intends to reduce production from 166,000 to 150,000 cars before the end of this financial year.
Mr Gopal said: “Because of that downturn we have had to reduce our workforce by 370 temporary associates.
“We are inextricably linked with Honda’s production. As it goes up our labour force goes up and as it comes down our labour force contracts.
“It’s never a good day for any company to reduce its workforce and we view our associates as an intricate part of the company.
“To see any reduction in that is a devastating blow for us.”
The temporary workers at DC Ltd will be given notice to leave between next month and March as production is scaled back on two lines at the main plant.
Members of the permanent workforce have been told they will not be affected.
The logistics company is part of the Honda Logistics Incorporated group.
It processes and distributes parts intended for the Honda plant.
A Honda spokesperson said: “Whilst it is never easy to hear of such news, SDC is entirely independent of HUM and whilst there are strong links between the businesses, any manpower decisions at SDC are not made or decided on by Honda of the UK Manufacturing.”