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Good news and bad news for the North East Economy

(32 Posts)
gillybob Thu 10-Oct-19 12:26:18

Today Nissan have announced the complete end of the nightshift at their car plant in Sunderland . Speaks volumes.
The announcement said there will be no job losses (yet?)

Sunderland based travel company Hays Travel announced that they were to take over ALL of the Thomas Cook travel shops securing over 2000 jobs countrywide. How this will work long term I have no idea as Hays themselves have their own shops close to old Thomas Cook shops. They won't need both on the same high street .

EllaKeat Thu 10-Oct-19 13:02:57

I am in the same area as you gillybob, and to me, it is all bad news.
For Nissan, I suspect this is the beginning of the end of any kind of investment in the north east. Brexit with no deal will just about see them off.
Hays travel sounds great, but Hays have thrived because they were small, local and close knit. When I worked they organised all of our travel and were great at it. Everyone was on first name terms.
There is simply not a big enough market for such a large number of branches of travel agents, I really think they have bitten off more than they can chew and hope this is not the end for them.

Septimia Thu 10-Oct-19 13:05:13

Presumably Hays have some sort of gradual consolidation process in mind, maybe involving some of the staff working in online bookings. I hope they have a good plan, anyway.

I thought the Nissan announcement was disconcerting.

But did you hear - somewhat understated on the local news - that Hitachi have a contract for West Coast trains even though they seem to have missed out on the Metro contract.

EllaKeat Thu 10-Oct-19 13:11:16

Septimia re Hitachi, no, I had not seen that. Great news, but I simply could not believe they did not get the metro contract ?

I do fear for this area.

Septimia Thu 10-Oct-19 13:16:18

Ella, I hope I'm right about Hitachi. I meant to be a bit more cautious about it since there was not much cheering about it going on.

I worry about the region, too, as it's struggled so much over the years. Even the 'northern powerhouse' doesn't reach this far north.....

gillybob Thu 10-Oct-19 13:17:19

I agree that things are not looking good for Nissan long term EllaKeat . A no deal Brexit will be the beginning of the end. We await news on the production of the new Juke which I suspect they will be waiting to announce until after Brexit.

I don't see how Hays can run all the Thomas Cook stores long term as they would be in direct competition with themselves in some areas. I think maybe the deal was all or none and they will eventually cherry pick what they want/need.

I was disgusted (but not in the slightest bit surprised) that the Metro contract will not be going to Hitachi Septima. Yes the news about the west coast trains will secure jobs for another 2 years

MaizieD Thu 10-Oct-19 13:22:01

I thought the Nissan announcement was inevitable. It was only a matter of time.

Glad to hear about Hitachi, but some domestic manufacturing had to continue.

MaizieD Thu 10-Oct-19 14:24:45

Meanwhile, in Swindon:

1,200 jobs at risk as Honda Logistics reveals it will close in Swindon

HUNDREDS of jobs will be cut at Honda Logistics site on top of the 3,500 redundancies already expected when the main manufacturing plant closes in 2021.

The affiliate is a separate company which supplies Honda - the car manufacturer is its main UK customer - and employs 1,200 staff in the UK.

Hundreds of these employees work in Swindon next to the manufacturing plant in South Marston.

A spokesman announced on Honda Logistics' Japanese website that Honda’s decision to end production of its cars in Swindon and quit Britain made its own business there unviable, so it too will end production.

www.swindonadvertiser.co.uk/news/17952742.1-200-jobs-risk-honda-logistics-reveals-will-end-production-swindon/

Swings and roundabouts, really?

Poor Swindon.

gillybob Thu 10-Oct-19 14:30:14

I agree MazieD . Poor Swindon. We have done work in the Honda plant over the years.

I think the knock on effect will be massive with so many tiered suppliers relying on the ongoing work from Honda.

gillybob Thu 10-Oct-19 14:32:05

I don't know where the "swings and roundabouts" comes in though? confused

gillybob Thu 10-Oct-19 14:35:06

It is common knowledge that it will be the North East that will suffer most as a result of a no deal Brexit.

janeainsworth Thu 10-Oct-19 14:43:42

Rather a pity that Sunderland voted leave, wasn’t it? ?

MaizieD Thu 10-Oct-19 15:10:57

Swings and roundabouts?

Gain for Hitachi in the NE, loss for Swindon in the Midlands.

growstuff Thu 10-Oct-19 15:16:39

The North East will suffer most from Brexit - no deal or not.

The "deal" has little to do with subsequent negotiations. Without smooth customs procedures for "just in time" logistics and favourable tariffs for industrial goods, the North East is really going to suffer.

gillybob Thu 10-Oct-19 15:30:11

I don’t think the people of Sunderland could see past their own nose ends JaneA like turkeys voting for Christmas !!

Yes of course you are right Growstuff.

EllaKeat Thu 10-Oct-19 17:28:14

I live in Durham. I am a remainer. So much so, I am getting up at 3:30 am on the 19th October to travel to London and protest.
However, in our friendship groups, we are the odd ones out. Most voted to leave and although i honestly cannot for the life of me think why, I appreciate their reasoning.
This area is disenfranchised. The last time this area of the country had any in-depth attention was during the miners strike.
'The North' appears to end at Leeds as far as some are concerned and a lot of people we know feel completely and totally abandoned.

Now, personqlly, I look at the placards, the signage, the plaques on evefy riverside walk, seaside pier, country park in this area and see the EU funding sign. I appreciate it. I also suspect (for that, read fully expect), that all funding for improvements such as this, particularly in the north, will cease.

I will stop now.

I just cannot understand the mentalitity sometimes, although I would neber fall out with friends over it, I am sad to say, the north east will get exactly what it asked for.

EllaKeat Thu 10-Oct-19 17:29:25

Apologies for spellinb mistakes. Chemo is a bugger ?

EllaKeat Thu 10-Oct-19 17:31:58

???and again.....

whywhywhy Thu 10-Oct-19 17:35:00

I used to live in the North East years ago and now live in the Midlands. The area has never had a fair crack of the whip and I do feel sorry for the genuine, kind and caring folk who live there. They have always been welcoming and hard working but I will never understand why they voted to Leave! I wish we could have another referendum as I don't think the people of the North East actually knew just what they were voting for.

EllaKeat Thu 10-Oct-19 17:42:19

@whywhywhy Unfortuneatley, and to my great chagrin, I think they would vote the same......
With friends, during gentle argument, yhey may acknowledge what you are saying is true, but would never change their vote,
Apparantly it just needs to ' be over'.

Yep, in ten or twelve years time, it might be.

Anyway, this was not a Brexit topic, so sorry. Just so depressing.....

MaizieD Thu 10-Oct-19 17:47:21

Well, it is a Brexit topic, really, EllaKeat because the withdrawal of Nissan is primarily because of Brexit. So sad when I remember how delighted the region was when Nissan first came here.

I live a few miles out of Durham and most of my friendship groups are Remainers, including some who have changed to Remain from Leave. So don't lose hope grin

Enjoy the march; I went on the last one but can't make this one sad

EllaKeat Thu 10-Oct-19 17:49:29

MaizieD I was on the last one too, so may well have seen you there?

Fennel Thu 10-Oct-19 17:49:56

I was born and grew up in the NE, now in South Tyneside where there is still so much poverty.
EllaKeat -
"I just cannot understand the mentalitity sometimes, although I would neber fall out with friends over it, I am sad to say, the north east will get exactly what it asked for"
I agree - I think part of the answer is we're still entrenched in the idea of community support - we'll manage. etc

Fennel Thu 10-Oct-19 17:53:13

ps got the boroughs wrong - we live in Gateshead.

EllaKeat Thu 10-Oct-19 17:57:30

@Fennel - sttill on the 'right' side of the river ?

<ducks for cover>