Feeds

Samsung waves goodbye to 425 Teessiders

Shuts monitors plant

  • alert
  • submit to reddit

Seven Steps to Software Security

Samsung is shutting down its computer monitor factory in Teesside with the loss of 425 jobs. The plant also makes microwave ovens. It shuts in April.

The Korean electronics group said that falling world prices for both products made it impossible for its Teesside plant to compete against imports from eastern Europe and the Far East.

The closure is a blow to England's North East, traditionally an area of low wages and high unemployment. Samsung says it will supply soon-to-be-ex-staff with good redundo packages and outplacement counselling.

But what about all the taxpayers' subsidies the firm has received for siting the plant in Teesside? Amicus, the trade union, reckons the Teessiders' jobs are like to be relocated to Spain and eastern Europe.

In a statement Amicus North East Regional Secretary Davey Hall said: "The workforce were informed today of the job losses without any prior warning. If they had trade union representation there would have been a proper consultation procedure. Amicus is campaigning for the government to bring in legislation that will offer stronger protection for UK workers to help stop the manufacturing jobs haemorrhage."

The trade union notes that Samsung received a government regional selective assistance grant of £450 million in 1996. That works out at more than a million pounds a job in less than seven years, which does not seem to be very cost-effective to us. Yes, we are aware of the ripple effect, creating jobs for local suppliers.

Now there will be a reverse ripple effect created by Samsung's departure. Yesterday, we reported the case of an illegal Chinese immigrant who worked for one such Samsung supplier, in Hartlepool.

Zhang Guo Hua, 40, from Heilongjiang in north-eastern China, died of a brain haemorrhage in October 2001 shortly after working a 24 hour continuous shift in the Hartlepool factory of Woo One UK. Korean-owned Woo One makes computer casings along with moulded plastics that are used in the manufacture of microwave ovens from Samsung. The factory, which opened in 1996, employ 400, according to Hartlepool Today. ®

Related story

MP probes British tech 'sweat shop' death

Boost IT visibility and business value

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.