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Press Release

Grim figures for manufacturing output prompts Unite call for interventionist policy

4 January 2012

Very poor figures for manufacturing output at the end of 2011 makes the need for an economic interventionist policy a top priority for the coming year, Unite, the largest union in the country, said today (Wednesday, 4 January).

UK manufacturing ended last year with the worst figures for the last quarter of 2011 – the worst since 2009 when the UK was in the grip of recession.

Unite Assistant General Secretary, Tony Burke said: 'It is a grim start to 2012 for manufacturing and our members who rely on a strong manufacturing performance for their jobs.'

'These fourth quarter figures are the worst performance since the depth of the 2009 recession.'

'We need an interventionist strategy to help manufacturing companies, be they large or small and medium sized businesses - otherwise stagnant manufacturing output is here for years to come.'

The Markit Purchasing Managers Index survey, which asked manufacturers about their output and order books, showed a reading of 49.6 last month (December) - a tiny improvement on the 47.7 recorded in November, but still below the 50 mark which signals the sector is expanding.

Tony Burke said: 'The coalition is seizing on any straw in the wind – but it has no coherent strategy to help manufacturing overall. It is a tough time across the European Union (EU) and the eurozone crisis makes things very uncertain for companies, our members and their families.'

'We have many world-class businesses, with a workforce with fantastic skills who need the government's help – but all ministers seem intent on are attacks on employment rights.'

'And our manufacturing companies rely on traditional markets in the EU. David Cameron may have won the backing of the 'Little Englanders', anti-EU MPs and the right wing media by skulking away from the European deal, but manufacturing companies and our members are not impressed.'

'We have to be on the pitch – in the game – we are not even on the subs bench when it comes to Team Europe – we are sitting in Row Z. But Cameron tells UK companies and our members we are not isolated from the eurozone crisis.'



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