French-based Arc International has denied a trade union rumour that it may cut almost 3,000 jobs by the end of 2008. Other unions are also reported to have criticised the rumour, which comes against a background of cuts at the company's Arques site in the Pas-de-Calais, introduced in 2004 & involving 2,659 job losses in 4 years. Through restructuring, the company plans to bring the workforce into line with production capacity & improve competitiveness. The 2004 plan involved a guarantee that no mass redundancies will take place until the end of 2008, but with no guarantee beyond that date. The lay-off plan is reportedly behind schedule, however, with over 1,000 jobs still to be cut before the end of the year. Management estimates that, even after the cuts, over 1,200 surplus jobs will remain. The site has 8,800 employees out of a total of 16,500 for the group. Arc, which is facing higher raw material and energy costs as well as the effects of the strong euro, has already frozen investments, notably in Russia. According to management, it may show only a balanced operating result for 2007.
