A Dundee engineering company has been forced to lay off staff because of the downturn in the North Sea oil industry.
Park Tool and Engineering in Fairmuir Square has laid off four staff – a quarter of its employees – in recent weeks because of a downturn in orders.
The company’s main customer was oil company Halliburton.
A company spokesman said the collapse in the oil price is now affecting companies that relied on the oil and gas industry up and down the north east of Scotland, not just in Aberdeen.
Almost 10,000 jobs have been lost in the North Sea oil and gas industry.
He said: “We originally had 13 workers and have to lay off four.
“There has been a downturn in work. We are contracted mainly by the oil and gas industry – our main customer is Halliburton but there is a lack of work from them.
“It’s a week to week scenario now as our main customer is not giving us much work.
“Our other engineering work is just bits and pieces. Most companies are struggling.
“We’ve been struggling for the past 18 months.”
He added: “It’s difficult to say what can be done or how quickly the price will rise.
“Companies up and down the north east are struggling.”
One former worker claimed staff had been laid off without any redundancy payments, although this was denied by Park and Tool when contacted by The Courier on Friday.
He said: “Six months ago they laid more staff off and they got redundancy but then they laid off more and they haven’t got anything.
“It’s shocking the way these guys have been treated.”
However, the company spokesman said he understood all staff laid off would be entitled to claim redundancy payments.
The Scottish Chambers of Commerce released a report earlier this year warning the downturn in the oil and gas sector was having an effect on the wider Scottish economy.
It said the impact of falling prices was “extending beyond” businesses operating solely in the oil and gas sector.
Scottish economic activity weakened in the first quarter of the year as the impact of the global oil price downturn dragged on output.
