Fears grow for workers

Hundreds of jobs were under threat in the West Midlands today in a bleak 24 hours for the region.

Firms unveiled cost-cutting measures as Gordon Brown admitted the weaknesses of the financial system had been laid bare.

In Walsall, washing machine repair company Servis UK has gone into liquidation and the plant closed after almost 80 years in business - casting doubt over the future of 150 workers.

Staff said they had lost their jobs and colleagues had been leaving steadily over the last few weeks, but bosses said all employees were being offered positions at the Birmingham headquarters of its parent company.

Furnishings chain Rosebys has also shut its last Black Country shop in Walsall, with the loss of five jobs. And Staffordshire digger giant JCB today warned it could shed more than 500 jobs by Christmas. Spokesman Nigel Chell said output had been cut by 19 per cent, adding: "Dealers and customers around the world are reducing orders because of low business confidence."

Jaguar Land Rover in Birmingham and Coventry is offering staff a three-month sabbatical in return for a 20 per cent pay cut.

And in Wolverhampton, long-established removals company Burke Brothers is moving a small number of its workers to a four-day week because of the downturn in the housing market - although it is still recruiting for its distribution arm. In Stafford and Lichfield, the former Pastiche restaurants have been shut down soon after being taken over by the Le Frog chain.

And work has stopped on the site of a former landmark pub in Dudley which was being developed into flats. The Straits House, which was once an historic mansion, was being converted as part of a £1.25m development.

Figures released today showed the average UK family was £14-a-week worse off during September than a year ago as incomes continue to be squeezed.

Today Gordon Brown admitted the crisis had exposed the "weaknesses" of unfettered capitalism, insisting that the financial systems must reflect "fairness, stewardship and co-operation".