Furlough welcomed

Perkins Engines announces three-week shut down

One of Peterborough’s biggest employers has shut down operations for three weeks and furloughed workers, after it was criticised for asking staff to take unpaid leave during the factory shut down.

Starting today (Thursday), Perkins Engines, based in Eastern Industry, will be closed until April 24.

An unspecified number of its hourly production staff will take furlough leave during that time.

The length of the shutdown means Perkins can take advantage of the government’s coronavirus job retention scheme, under which 80 per cent of staff salaries are met but it has to be for a minimum of three weeks.

Three days ago, the engineering behemoth, which emtemporary ploys 2,500 people at Eastern Industry, said it would shut for two weeks with staff taking annual leave during the closure.

That move sparked an angry response from some staff and prompted Peterborough MP Paul Bristow to raise the issue with the government’s business minister and to make an impassioned plea for the company to end the uncertainty for its employees.

A spokesman for the firm said: “While a number of governments around the world have classified Perkins operations as essential activity, the covid-19 pandemic is having an impact on global economic conditions.

“We are taking a variety of actions at our global facilities to reduce production due to weaker customer demand, potential supply constraints and the spread of the pandemic and related government actions.

“These actions include the

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YOU MOVING! suspension of our Peterborough facility’s operations starting April 2, 2020 through to April 24, 2020.

“Operations should resume on Monday April 27, 2020.

“Hourly production employees will now be furloughed in line with the UK Government Job Retention Scheme for this entire period.

The spokesman added:

“Employees that can work from home must continue to do so if their role is not directly related to production.

“A small number of essential activities on site will continue to operate at this time.”

Peterborough MP Bristow welcomed the move from the firm.

He said: “While we are all sorry to see production cease, I welcome the news that Perkins Engines will furlough workers during their shutdown.

“This gives their production employees in Peterborough security, because the government will fund 80 per cent of their wages.

“A furloughed shutdown can also be extended beyond April, should supply and demand remain poor.

“I’m also grateful to the Business Minister for his help.

“We have a government that responds and is helping our city during this emergency.”

Peterborough MP Paul Bristow