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1,158 Jobs Go In Call Centre Blow

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Recovery news

MORE than 1,000 jobs were lost yesterday after the North- East’s largest call centre operator collapsed into administration.

The majority of the 1,158 employees at Garlands were told they were being made redundant with immediate effect after the shock news was given over the company’s radio station.

Only a few staff have been asked to stay and manage the business in administration.

The news comes as the region’s business and council leaders urged the Government to help the region emerge from recession.

The open letter, signed by all 12 North-East councils and the Northern Business Forum, hopes to forge a new understanding between public and private sectors and the coalition Government over what is needed for the region.

Their move was given added impetus yesterday by the unexpected collapse of the Garlands call centre empire – one of the biggest in Europe.

The company, which employs 178 people in South Shields, 621 in Hartlepool and 359 in Middlesbrough, was founded by local-born multimillionaire Chey Garland.

At the height of their success, the centres handled 36 million calls a year.

Staff were able to relax in “chill out zones” containing sculptures, water features, and plasma screens. The company even had its own radio station, Radio Ga Ga.

Ms Garland, who received the CBE in 2007, said she had fought “tooth and nail” to save the business, adding it had taken: “Thirty years of hard work to build and just 18 months of economic recession to destroy.”

The end came after major clients terminated contracts with the firm, meaning the board saw no viable way to keep the company going.

The company said it could not say which clients had pulled out because of confidentiality agreements, although Orange and Vodafone have previously cut back on work with the company.

Staff were unaware of the problems the company was facing until the announcement was made at about 2pm yesterday.

Stephen Mullins, 30, of Thornaby, near Stockton, who has worked at the Middlesbrough centre for nearly four years, said the news had come out of the blue.

“Until they made the announcement we were losing our jobs, we didn’t know anything,”

he said.

“It has come as a complete shock.

“They announced the news on the radio station. They didn’t even bother telling us face to face.

“We all feel very let down.

We don’t even know what severance pay we are going to get for up to four weeks.”

College student Jake Gauntley, 18, of South Shields, said: “I was due to start my shift at 5pm, but at lunchtime I got a call from a friend to say he had heard I had lost my job.

“I didn’t know what he was talking about so I came to work early to find the building locked up.

“Two blokes I didn’t recognise told me I didn’t work there and that I should leave.”

PricewaterhouseCoopers (PWC) has been appointed administrator.

A PWC spokesman said: “As a consequence of the company having a number of key contracts terminated by clients, the directors have reached the conclusion it is not possible to support continuation of trading, apart from a single contract.

“Unfortunately, all staff apart from a number required to run this contract and a small number to assist the administrators in the closure of the business will be made redundant today.”

Ms Garland started in business in 1980 with a small debt collection agency. Since then, she has won a series of awards for her role in the industry, including business services entrepreneur of the Year in 2002, best business leader in the 100-plus employee category at the Sage Business Awards 2002, and the 2005 Veuve Clicquot Award for businesswoman of the year.

She was ranked 1,771 in last year’s Sunday Times Rich List.

In its most recent financial report, which covers to the end of October 2008, the group said its sales fell from £48.5m to £44.3m and that bottom line profits fell from £2m to £476,000 from the previous year.

In the past year, the company cut more than 200 jobs after Orange and Vodafone reduced business.

Garlands closed its Preston Farm site, in Stockton, in March last year.

More recovery news.

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Offshoring is brilliant.

If those in your country attempt to make it as expensive as possible to live and operate in it then the logical solution is to ship everything that you can abroad.

Total refusal to deal with the issues and printing more money will lead to even worse failure.

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Bravo, bravo, bravo.

Hartlepool Bay - 2 Bed Apartments - Cleveland

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Price: £144,750

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Bravo, bravo, bravo.

Hartlepool Bay - 2 Bed Apartments - Cleveland

Hartlepool Bay is a luxury residential development of exclusive waterside and sea view apartments for sale on the Hartlepool Marina. Built by Jomast Developments Ltd, this highly desirable community is situated at Hartlepool Marina and is a sought after location for first time buyers, young professionals, mature couples and those planning retirement. Luxury apartments offer home buyers superior standards of living and are designed to capture the natural surroundings of this unique coastal development. Apartments at Trafalgar House are the latest to be released for sale by Jomast Developments at Hartlepool Bay (example images below). Luxury two double bedroom apartments directly overlook the North Sea and start from £144,750 (5% deposit paid). Five exclusive corner apartments offer spacious accommodation, stylish interiors and panoramic 180 degree views from the main living area. High quality fittings come as standard. …

Price: £144,750

Sounds like a lifestyle rather than a flat.......er luxury apartment. Buy now the price is rocketing acording to the Daily Express.

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that's another huge blow to the already-faltering local economy.

These people were probably on quite low wages, I would imagine. But at least they were privately employed and not sucking from the state teat.

Straight to the dole for 90% of them I would say.

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FIRE?

Fund it,

Inflate It

Relocate It

Export It.

Fook

Incinerate

Revive

Exploit

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Are we all of the opinion that the North East will be one of the hardest hit areas once the s... hits the fan?

Most ppl I speak to up here seem to still be on about buying houses...got to get on the ladder they say. Brilliant time to buy they say.

And if not buying houses they're on about their Farmvlle score on Facebook.

Zombies...

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The UK manufacturing industry has been almost entirely outsourced.

Next is the service industry.

Just someone tell me where the f*** people or gonna get jobs in the future?

Yes, I wonder when these 'brainiacs' will come to realise that there is no one left who can buy their overpriced energy, products or services (without a bit of lolly coming in from a job).

The "Madness of crowds" and all that? - or deliberate policy as we have been forewarned for years!

Edited by erranta

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Are we all of the opinion that the North East will be one of the hardest hit areas once the s... hits the fan?

Most ppl I speak to up here seem to still be on about buying houses...got to get on the ladder they say. Brilliant time to buy they say.

And if not buying houses they're on about their Farmvlle score on Facebook.

Zombies...

Bit harsh there.The north has still some of the best manufacturing companies in the world within it.Glaxos biggest plant,Cummins Engines european manufacturing plant,Nissan,Rolls-Royce plants,many many pharma and chemical plants.The problem is economic policy for 30 years has been ran to keep the consumer and the house owner happy.The pound was over-valued for decades and it slowly killed manufacturing.We lost plant after plant.

The industry needed faster transport links but we got sod all.As for blaming northerners for HPI well they were victims.Estate agents were getting calls from London clients saying il buy all the terraces you have on your books.It started just after Gordon taxed pensions into oblivion.

Cameron could finish Labour forever if he listens to the Libs and re-opens the shipyards to manufacture the new wind turbines etc.The skills are there,the yards are still there,the labour is there,but wheres the capital?.Royal Bank of Scotland thats where.

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Bit harsh there.The north has still some of the best manufacturing companies in the world within it.Glaxos biggest plant,Cummins Engines european manufacturing plant,Nissan,Rolls-Royce plants,many many pharma and chemical plants.The problem is economic policy for 30 years has been ran to keep the consumer and the house owner happy.The pound was over-valued for decades and it slowly killed manufacturing.We lost plant after plant.

The industry needed faster transport links but we got sod all.As for blaming northerners for HPI well they were victims.Estate agents were getting calls from London clients saying il buy all the terraces you have on your books.It started just after Gordon taxed pensions into oblivion.

Cameron could finish Labour forever if he listens to the Libs and re-opens the shipyards to manufacture the new wind turbines etc.The skills are there,the yards are still there,the labour is there,but wheres the capital?.Royal Bank of Scotland thats where.

Ooooh no, i'm not blaming Northerners for HPI, and I appreciate the NE has a strong heritage, and to some extent still does. It's just that as a large proportion of the NE is supported by the public sector (which I'm part of!), I wish that alot of ppl would wise up to their economic future.

Purely anecdotal but I was in the office today and this guy was waiting for some printing but he was waiting for a print job to finish. Rather than come back later he stood their for half an hour waiting for the current job to finish. I'm guessing man in question was on about £20 p/h - so he just earned a tenner for standing doing nothing. Ridiculous! He doesn't know how lucky he is to have a job!

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The paradox is that in our world of global markets for everything the employment is allowed to goes where the costs are lowest. The amazing thing is that we still have any domestic manufacturing left.

The claims that we need high tech digital or green industry is just empty talk because as so as we’d create economic activity in those areas they’d be exported. The real issue is we need to look long and hard at how industry is treated by the tax system. It is only manufacturing that can help support the nation economically in a global sense.

The service sector doesn’t actually export and has in the past actually imported employees to work at minimum wages. The manner that it is treated by the tax system needs to be altered so that our indigenous population want employment in it. Manufacturing needs to get the support that allows it to develop product that can’t be just off shored and lost overseas.

As a footnote it was distressing to see that wind turbine company close shop on the Isle of Wight a year or so ago. We now import them from abroad which makes the domestic use of them even more questionable. :wacko::wacko::wacko:

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The paradox is that in our world of global markets for everything the employment is allowed to goes where the costs are lowest. The amazing thing is that we still have any domestic manufacturing left.

The claims that we need high tech digital or green industry is just empty talk because as so as we’d create economic activity in those areas they’d be exported. The real issue is we need to look long and hard at how industry is treated by the tax system. It is only manufacturing that can help support the nation economically in a global sense.

The service sector doesn’t actually export and has in the past actually imported employees to work at minimum wages. The manner that it is treated by the tax system needs to be altered so that our indigenous population want employment in it. Manufacturing needs to get the support that allows it to develop product that can’t be just off shored and lost overseas.

As a footnote it was distressing to see that wind turbine company close shop on the Isle of Wight a year or so ago. We now import them from abroad which makes the domestic use of them even more questionable. :wacko::wacko::wacko:

Tax is a very important issue for manufacturing as is red tape.We will never have manufacturing agove about 20% of GDP but we do still have a chance if policy is right.

Glaxo make more in a 100ft square room than 1000 Chinese factories.A lot of manufacuring costs now is transport etc.Government really needs to get sorted here.Rail links straight to ports etc.As you said the wind turbine debacle is crazy but i think we will see some big developments along those lines and iv heard the old Swan Hunter yards mentioned.

The facts are we are one of 4 countries who can build nuclear subs,one of 2 who can build world class engines,one of 4 who can make world class pharmaceuticals,etc

The problem isnt our world class manufacturers,its the middle run has gone,so we have big but not medium and its decades since we built a world class manufacturer.

A lot comes down to finance.We were world leaders in computers,software,mobiles etc but never turned them into big manufacturing companies.Perhaps time for government intervention.Billions go on welfare in the north,perhaps some of that could go into funding new manufacturing.Live in hope.

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Guest Noodle

Bit harsh there.The north has still some of the best manufacturing companies in the world within it.Glaxos biggest plant,Cummins Engines european manufacturing plant,Nissan,Rolls-Royce plants,many many pharma and chemical plants.The problem is economic policy for 30 years has been ran to keep the consumer and the house owner happy.The pound was over-valued for decades and it slowly killed manufacturing.We lost plant after plant.

The industry needed faster transport links but we got sod all.As for blaming northerners for HPI well they were victims.Estate agents were getting calls from London clients saying il buy all the terraces you have on your books.It started just after Gordon taxed pensions into oblivion.

Cameron could finish Labour forever if he listens to the Libs and re-opens the shipyards to manufacture the new wind turbines etc.The skills are there,the yards are still there,the labour is there,but wheres the capital?.Royal Bank of Scotland thats where.

+1 and I'd like to add you're a role model.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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