Turner Powertrain sheds 70 workers

Up to 70 redundancies have been announced at a Wolverhampton transmissions company.

The jobs are being axed at Turner Powertrain Systems in Racecourse Road, Dunstall. The firm says the cuts are in response to "worsening market conditions" and that workers have been offered a voluntary redundancy programme. The company, part of Caterpillar UK Ltd, is a leading light in the design, manufacture and sales of off-highway transmissions.

One worker, who did not want to be named, said: "They told us about the redundancies this week; everyone is absolutely gutted and cannot quite believe it. No-one quite knows what the next step will be. Everyone is in shock. We're owned by Cat, which everyone knows is really suffering at the moment."

A statement from the company, which has roots dating back to 1859, says it is suffering from a "much-reduced demand" for its products.

David Nixon, from Caterpillar UK, said: "Turner Powertrain, part of Caterpillar's motion and power control division, is proposing up to 70 redundancies in its permanent workforce at Wolverhampton, subject to consultation with employees and their representatives.

"This is a result of worsening market conditions and the need to lower our production volumes to take account of the much-reduced demand for Turner Powertrain's products.

"We regret this action is necessary. However, it is ultimately in the long-term interests of our business.

"Caterpillar's focus is on making decisions and taking actions that will position the company for long-term success and profitable growth."

Forecasts from experts, including members of the Bank of England's monetary policy committee, say there could be more than two million people unemployed by Christmas in the UK.

Caterpillar, one of many firms hit by the global economic meltdown, last month axed 170 temporary positions at its factory in County Durham.