Caravan firms announce potential loss of 360 jobs

HUNDREDS of jobs are set to be lost from Hull's caravan industry as two city firms fall victim to the credit crunch.

East Hull firm Cosalt Holiday Homes has announced the potential loss of about 280 workers due to a slump in the company's order books.

Atlas Holiday Homes, based in Wiltshire Road, west Hull, has also made about 80 cuts as sales of static caravans and holiday lodges decline.

Cosalt's parent company, Grimsby-based Cosalt Plc, announced it was selling the Hull caravan and lodge business in June this year.

According to a statement made by the company at the time, is was trading below expectations due to the economic climate and conditions specific to the caravan industry.

One Cosalt worker, who wished to remain anonymous, told the Mail the announcement of the sale had crippled confidence in the business leading to a further decline in orders.

He said: "People don't want to place orders because they don't know whether we will be here.

"There are no orders coming through and they don't expect any so there's no reason to keep staff on."

Senior GMB official Ken Vincent said unions had been called to a surprise meeting with the firm's managers last week to discuss the situation.

He said: "We were told the company didn't have any orders beyond October 31.

"We are in a three-month consultation, which means the last workers to leave will be on New Year's Eve."

Mr Vincent said the unions were due to meet with managers today to find out what is going on with the sale of the company.

The losses at Atlas come on the back of a separate announcement the factory will close between Friday, October 17 and Monday, November 3, during which workers will be unpaid.

Cosalt Plc refused to comment on the redundancies and no one from Atlas Holiday Homes was available.