Honda announcement adds to jobs woe

The Government is braced for more bad news next week when new figures are set to show a big increase in the number of people out of work.

Jobseeker's allowance claimants topped one million last month, and the wider measure of unemployment, including those not eligible for benefit, is hurtling towards two million.

Unions fear a fresh wave of redundancies will be announced in the coming days in private firms and the public sector, while new data next week is expected to show that the UK is officially in recession.

Jobs lost included over 400 at Newcastle upon Tyne-based frozen food firm Findus, which went into administration last week. The GMB union said the news was "devastating" for workers at the plant, which produced a range of frozen food products including crispy pancakes, ready meals, fish pies, bakes and fish fingers.

Administrator Zolfo Cooper had been hoping to secure a buyer for the business as a going concern, although the factory closed last week after a fire.

Around 70 jobs could go at the Celtic Manor Resort in Newport, South Wales, the hotel which is to host next year's Ryder Cup golf tournament.

Car giant Honda added to the gloom by announcing it will halt production at its Swindon factory for a further two months, saying the European motor market was not showing any signs of recovery. The Japanese firm had already decided to stop production in February and March, but that will now be extended into April and May.

The firm said there were no plans for redundancies among its 4,200 employees but unions said workers faced a 50% cut in wages.

Derek Simpson, joint leader of Unite said the car industry "desperately" needed a "lifeline" from the Government, saying: "We also need immediate financial support for workers, such as those at Honda, who must take a cut in pay in order to keep their jobs."