DUNDEE, Scotland (Sept. 1, 2006) — Michelin U.K. Ltd. will lay off approximately 90 workers at its passenger tire plant in Dundee early next year but said it is planning a “significant investment” in the facility in the next three to five years.
The tire maker will lay off about 10 percent of the 34-year-old factory's employees progressively starting Jan. 3, 2007, as the plant changes its shift working system to four teams from five, according to Ian Peart, personnel manager at the plant.
The change in team operations—and the subsequent lay-off announcement—was tied to a decision by parent Group Michelin to keep annual production at the factory at the 2006 level for the next three to five years. Mr. Peart said he could not discuss details of the investment package.
Mr. Peart said the layoffs were being implemented to “ensure the plant is operating productively and effectively,” and he stressed that no forced layoffs would be imposed on the workers.
“There are opportunities for voluntary redundancies, and we are looking for volunteers to work in other factories outside the (United Kingdom) where there is growth,” he said.