Receivers hold fire on shipyard job losses

FEARS ARE growing that Swan Hunter's 350-strong design team will be the first workers to be made redundant by receivers called into the warship yard on Tyneside.

Last night the three receivers from Price Waterhouse backed off from a warning issued earlier in the day that lay-offs among the 1,800 employees could begin as early as tomorrow.

After meeting with unions at Swan Hunter the receivers announced that there would be no redundancies this week, although job losses were inevitable. However, an announcement about redundancies to take effect next week is likely to be made tomorrow.

Local Labour MPs fear that the workers will start being dismissed next Friday - the same day that Swan Hunter's arrangement with the Ministry of Defence to continue work on an order for three Type 23 frigates expires.

The Tyneside yard was pushed into receivership last week after a pounds 165m order for a Royal Navy helicopter carrier was awarded to a rival consortium of VSEL in Barrow and Kvaerner Govan on the Clyde.

Stephen Byers, Labour MP for Wallsend, said: 'The real worry is that with no ships to design there will be no need to keep the designers on.'

The MPs are anxious to persuade the MoD to keep the frigate contract at Swan Hunter. This will provide 1,100 jobs until November when the first vessel is due to be handed over to the Navy.

The jobs warning came as it was disclosed that between 10 and 20 companies from Britain and overseas had made inquiries about the threatened yard.