LONDON Passive and interconnect devices specialst AVX is cutting 130 jobs at its facility in Paignton, England and shifting production to a plant in the Czech Republic where labour costs are cheaper.
AVX gave staff 90 days notice of redundancy last week, sparking "shock" from the GMB union, which said it asked for talks with no response.
According to the local newspaper , South Devon Herald Express , union representatives thought last week they were going to discuss wage increases when called in by bosses, so the bad news was a major shock.
Union bosses were apparently told the company was doing reasonably well despite a massive drop in the sale of mobile phones, for which it makes the bulk of components made at the Paignton plant.
Clive Moloney, GMB trade union representative at AVX, told the newspaper “We were called in and no-one was expecting it.
"The company has admitted the order book is strong and we're making a lot of money, but not as much as the Americans would want. I think the company will go to the Czech Republic and then move to America. It stinks.”
The move has echoes of another U.S. company that is shifting production from one European country to another , citing cheaper wage rates.
Dell is in the process of moving manufacturing from Limerick, in Ireland, to Lodz, Poland.