ATHOL — Citing the economic impact of the COVID-19 pandemic, L.S. Starrett Co. said in a release provided to the Athol Daily News on Tuesday that it needs to “evaluate the future visibility of the Jedburgh (Scotland) operations.” The statement goes on to state that “unfortunately, after 62 years, the L.S. Starrett Company Ltd. (Starrett’s UK operation) has communicated to its Jedburgh employees that some jobs are at risk of redundancy as there is a proposal to cease manufacturing in Starrett Jedburgh.”
Information provided to the Athol Daily News indicated the company plans to transfer manufacturing operations from Jedburgh to Brazil and China, resulting in the loss of approximately 100 jobs at the Scotland site.
When asked in an exchange of emails to confirm this information, company president D.A. Starrett said it is “too early in the process to definitively answer those questions.”
Starrett also said it was “too early in the process” to say whether this move would have an impact on Athol (Massachusetts) operations. Approximately 500 employees work in Athol.
The company states “nothing will be decided” until consultation with Jedburgh employees likely to be affected and their representatives has been completed.
A story published on the website of Southern Reporter, based in Selkirk, Scotland, says consultations are expected to last seven to eight weeks. The election of employee representatives to carry out negotiations with the company will take place in the next two weeks.
Sales, marketing, customer support, and “back-office functions” will continue at the Jedburgh site, according to the company’s release.
Starrett, in response to another inquiry, said Brexit – the United Kingdom’s departure from the European Union – played no role in the company’s decision to halt manufacturing in Jedburgh.
Starrett is one of the town’s two largest employers. Jedburgh Councilor Scott Hamilton was quoted in Southern Reporter as saying, “Obviously, this news will have a huge impact on Jedburgh and the surrounding area.
“COVID has been a huge challenge for businesses, which has been highlighted by both of these businesses in the town. These are the two main employers in Jedburgh, and having one to shed a large number of staff is bad enough, but both at the same time is really going to have a big impact on the town as a whole.”
The government has policies in place to help people losing their jobs, but it’s definitely not a replacement for having lost your job and the security of a regular wage.”
Councilor Jim Brown told Southern Reporter: “The closure of L.S. Starrett brings to an end over 60 years of high-quality employment within our community and the loss of around 100 jobs. Once again, we see relatively cheap labor in other parts of the world and the availability of cheap global transport taking its toll on high-end companies such as Starrett.”
Jedburgh is a community of just over 4,000 residents in southeast Scotland.