A Fife textiles firm is to cut its workforce as it prepares for a “challenging year” for the business.
Staff at Tayport-based Scott & Fyfe were informed on Monday that a number of redundancies would be made.
It is understood 16 staff will be made redundant before the end of the month.
The firm, which employs about 90 people, informed staff of the decision in an email on Monday evening.
It reads: “As communicated during our employee briefings in December, 2023 is expected to be a tough year for our business.
“Due to this, our trading position and customer forecasts are experiencing many changes.”
The letter is from Scott & Fyfe’s new managing director, Michelle Quadrelli.
She said the firm has taken steps to avoid compulsory redundancies.
These include restrictions on recruitment, the reallocation of labour across the site as well as several positions not being backfilled.
However, Ms Quadrelli said that was not enough and there would be 16 redundancies.
These will be made up of 14 machine operators and two engineering roles.
She said the firm was responding to changing forecasts and increased costs, adding there is an “urgent need to balance activity and demand”.
‘A decision the board had to take’
Staff affected will be invited to individual consultation meetings.
Nobody from Scott & Fyfe responded to multiple requests for comment.
However, Ms Quadrelli’s letter adds: “I understand the seriousness of this announcement.
“I wish to assure you this is a decision the board has had to take to protect the business.”
She adds there is “little prospect of any short or medium-term changes in demand”.
It is the second time in four years the Fife textiles firm has had to initiate redundancy talks.
Record profits for Fife textiles firm
Initially started as a linen works in 1864, Scott and Fyfe now supplies industries across the globe..
The business moved to employee ownership in 2012.
The firm’s most recent accounts, for the year ending December 2021, show a pre-tax loss of £1.2 million on revenues of £14.9m.
However, in 2020, the company made its greatest pre-tax profits in more than 150 years of trading, at £1.5m.
Companies House records also show John Lupton, the firm’s former chairman, left his role as a director on December 31.
In his report accompanying the accounts published before his departure, Mr Lupton said 2021 had been a “very difficult” year for Scott & Fyfe.
“Previous positive progressions regressed in the period as a result of a deterioration in our operating environment and presented some of the greatest challenges faced in our long history,” he said.
Urgent meeting requested by union
Unite the union has vowed to do all it can to prevent any redundancies.
Dougie Orchardson, Unite industrial officer, said: “Unite has been made aware that around 16 jobs could be under threat at Scott and Fyfe.
“We are seeking an urgent meeting with the company to ascertain if any job losses can be avoided including through council and government support.
“Unite will be representing our members throughout this understandably anxious time and doing everything possible to prevent any redundancies.”
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