Report to the People
24th May 2004

Amazon in Good Company

Whether the Scott Lithgow’s, Tate and Lyle and Kincaid’s of yesterday, or the IBM, T-Mobile and National Semiconductor of today, the brands with which Inverclyde is associated are famous throughout the world.

And, as we learned last week, we will soon have another name to add to our stable of top-line companies.  Online retailing giant, Amazon.co.uk, is set to create up to 300 full-time jobs – from packers, to human resources support staff – in Gourock.

In addition to being a worldwide brand, there is another reason why Amazon.co.uk will fit in well in Inverclyde: they understand the value of adapting and diversifying.  Just as we went from building ships to building microchips, Amazon has gone from being an online bookseller, to providing DVDs, computer games, electronic products and now even tools and household goods.

This announcement is proof that Inverclyde can still be a place where the blue-chip brands invest and do business.

And that we need to attract world-leading companies is not in doubt.  The disappointing, if not wholly unexpected, announcement that Clairemont Electronics has called in the receivers underlines the fragility of many of the electronics manufacturing jobs on which our economy is over reliant.

Having been in similar situations myself, I know that these will be very worrying times for the staff affected and their families.  I also share their anger at how they have been treated.  Quite apart from the human decency aspect, you cannot build an economic recovery on the shaky foundations of low-paid, insecure jobs.

There are also, as you will doubtless be aware, growing calls for the better protection of agency workers.  As employment law applies UK-wide, it is a matter at which the Westminster Parliament will have to look.  I do know, however, that our MP,  David Cairns, takes the issue very seriously and has raised the issue with the Employment Minister.  But, no matter how well agency workers are protected, we will never be able – and nor should we attempt – to compete on a cost basis with sweatshop economies for low-end assembly work.

The decline in the electronics industry has led to some tough times for our economy, as the Clairemont announcement shows.  But if we can continue to attract a wider range of firms in industries which offer more secure employment, such as Amazon, we have a real chance of lasting economic regeneration.

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