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Thursday, August 26, 2010

HP creates 700 Scottish jobs but is accused of exploiting subsidies

Dawinderpal Sahota, Computing, Thursday 26 August 2010 at 10:22:00




Unite says HP is using �7m grant to replace the 700 jobs it moved to Czech
Republic last year





HP is to create 700 new jobs at its base in the Scottish town of Erskine,
Renfrewshire by 2014.



The roles will focus on supply chain, telephone and online sales, as well as
marketing and customer support.



The company is to create these roles following the establishment of an IT
services hub and will receive up to �7m of Regional Selective Assistance (RSA)
support from funding body Scottish Enterprise to establish the site.



RSA is the main investment grant scheme for businesses in designated areas of
Scotland.



Despite welcoming the news of the further job creation, trade union Unite
questioned whether HP is taking advantage of a "public subsidy merry-go-round?
to sack and replace employees at this plant and across the UK.



Although HP has pledged to create 700 jobs, using the �7m subsidy from the
Scottish government, 700 jobs were cut from the same site in Erskine last year,
as the firm moved its manufacturing processes from Scotland to the Czech
Republic.



?This situation makes it look like the company is using the public subsidy
merry-go-round to create jobs and replace those that they have transferred to
Eastern Europe where labour costs are cheaper," said Peter Skyte, Unite national
officer for IT and communications.



?We will be demanding that the company use this opportunity at Erskine to
redeploy employees from the current workforce who face possible redundancy in
two months,? he added.



HP has defended its decision to use a government subsidy to create 700 jobs
so soon after moving 700 roles from the same site to the Czech Republic, by
arguing that the two moves are completely separate.



An HP spokesperson told Computing that a decision was made not to
keep the 700 manufacturing jobs in Erskine and to centralise manufacturing in
the Czech Republic for cost reasons, and that the services jobs to be created
will require a different set of skills.



?The new positions in Erskine are to support business growth and we?re
currently in consultation with the workforce about the changes that we?re
making,? said the spokesperson.



?When the Scottish government gave us the support, they were completely aware
of the work that we?re doing to take the manufacturing business offshore. This
is an investment we?re making to bring services roles into Scotland.?




Full story at http://www.computing.co.uk/computing/news/2268726/hp-sets-scottish-services-hub

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