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Carcraft 'set to axe 50 or 60' workers
Helen Johnson25/ 4/2008
MORE than 50 jobs are set to be axed at one of the town's biggest employers.
Staff at the Nixon Street-based Carcraft head office have been warned to prepare for the worst after the firm started asking for voluntary redundancies.
If bosses do not receive enough suitable applications, they will be forced to axe jobs.
The cuts will affect those working in the central support services department.
In a letter to staff, Carcraft says problems have been caused with the main funder of their uCan Car Credit business withdrawing from the market.
Welcome Financial Services will no longer fund hire purchase deals offered to Carcraft customers.
One member of staff, who asked not to be named, told the Observer he fears the latest round of redundancies will mark the beginning of the end for the Castleton site.
He said: "I think they're looking to make about 50 or 60 people redundant. I don't think it'll be long now before the Rochdale operation closes altogether."
A letter sent to employees from the head of Human Resources stated: "I am regretfully writing to confirm that it is likely your position is at risk and you should regard the receipt of this letter as warning notice of that potential redundancy."
In light of the problems, the firm has stopped all overtime and non-critical recruitment, launched a review of capital spending and taken steps to minimise employees' expenses.
Last December more than 20 staff, mostly in the valeting and workshop departments, lost their jobs and a similar number transferred to other Carcraft sites in the region.
At the time, Carcraft said the cuts were a result of being refused permission to expand onto the Kingsway Business Park site, and have blamed the same factor for the most recent round of rendudancies.
Carcraft managing director Barry Nightingale said: "This is a shame as we have been trading in the town since 1951 and were keen to expand our operation in our home town. We have outgrown our existing facilities in Nixon Street and are continuing to look for alternative accommodation. We now have no alternative but to review our central support roles based in Rochdale."
Rochdale Development Agency have again hit back at the claims, stating that a Carcraft scheme had been seriously considered for the business park, but wan't possible because of planning and legal restrictions.
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25/04/2008 at 18:59
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