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Border workers left with nothing to smile about

Category: Scotland Business News — Gary Cain on March 8, 2012

A Scottish-based dental company has completed the move of its floss production facility from Tweedbank in the Borders, to a facility in Malaysia.

The decision to move production has resulted in the loss of 132 jobs. There are now just 15 positions remaining, with the site presently being converted to a warehouse.

It is expected that a new product research and development facility will be created at the site, though it is unlikely more than 5 extra positions will be created.

The move has come purely as a cost saving measure, with Peri-dent citing back in June 2011 that the lower labour costs were behind the decision. Despite lengthy negotiations with a number of unions, the move could not be prevented.

It comes at a bad time for the region, with unemployment rising and more companies facing financial difficulties.

There are those staying loyal to a Scottish workforce however, preferring to invest in the local population ahead of off shore alternatives.

Customers are now more aware of the operational aspects of companies they deal with, and instances have already been seen of customers moving away from those moving operations abroad. Many business leaders are now factoring this in to their decision making.

To help sustain companies, improving access to commercial finance in Scotland would help but, more than that, they are calling for the Scottish consumer to back them.

How the move will affect Peri-dent’s sales is unclear, but it is likely many will be disappointed by the company moving a large part of its operation after 25 years.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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