Vicious downward pressure on corrugated prices has been blamed for looming redundancies at Winnetts Graphics in Salford.


Up to 62 jobs could be lost, including 50 in the corrugated department. Off-site customer-based operations would account for the other losses.


Winnetts management is understood to be negotiating possible wage cuts with the GPMU to save jobs.


In a letter to employees sent out last week, managing director Rob Moore pinned the difficulties of the corrugated division on a combination of tight pricing, higher-than-average wage levels and poor market conditions.


"The trading position of Winnetts Graphics has been poor for some time," Moore said. "Our profits have declined, and poor market conditions have led to a need to consider whether the corrugated department is viable at all or, at least, in its present form."


Moore said the GPMU would be consulted in an attempt to avoid compulsory redundancies and minimise the number of employees affected.


Greater Manchester GPMU branch officer Arthur Scott is due to meet employees on Monday (25 June) to discuss the proposals. He pinned the blame for possible cuts on relentless price cutting.


"Prices have been dropping consistently, but prices for raw material continue to go up," he said. "The packaging companies are almost asking the industry to produce their product below cost."


Winnetts was acquired by Weir Technology in 1998.


Story by Richard Rhydderch