A Dundee company boss said there would have been fewer redundancies if the furlough scheme had been extended earlier.
Chancellor Rishi Sunak initially said the Job Retention Scheme scheme would close at the end of October.
The scheme was utilised by printing firm Tradeprint whose sales were badly hit as parts of the economy closed.
With the furlough end date approaching, it started a consultation process. This led to 37 workers losing their jobs.
‘We wouldn’t have cut so deep’
But the scheme was then given a last minute extension, much to the frustration of Tradeprint’s managing director Charlene Joss.
“When Covid hit, our sales fell to as little as 10% of normal levels,” she recalled.
“They recovered quickly, but they normalised at around minus 40%.
“The Government presented the furlough scheme, but attached the end date – our hands were forced. Then at the 11th hour they extend the scheme.
“If we’d known furlough would have continued at 80%, some of the people made redundant would still have jobs now.
“We certainly wouldn’t have cut so deep.”
‘We felt so powerless’
The managing director described the redundancy process as “horrible”.
She said treating the employees respectfully was the top priority.
“It was so emotional for everyone involved. It’s not something any of us wants to experience again in our lifetimes,” she said.
“The saddest part was knowing nothing anyone did was wrong and there was nothing we could do to change it. We felt so powerless.
“Our mantra was to make sure we did it with dignity and respect. We don’t know what’s round the corner and we might suddenly need people back again.
“At last, we’re starting to see volumes picking back up. We’re at the stage now where we need to start looking to recruit again in some areas.”
Covid a ‘catalyst for change’
Tradeprint’s sales compared to pre-Covid levels remain down but have steadily improved. Boosted by the forthcoming election, volumes were down by around 20% in April.
Mrs Joss said Covid-19 has also served as a “catalyst for change”. Outsourced jobs were brought back in house to make full use of the surplus capacity available.
She said the firm had made some investments on equipment and would soon recruit again.
Newly filed company accounts for the year ending June 30 show sales of £12.4 million compared to £15.1m last year. The pre-tax loss remained stable at £2.8m despite the dramatic downturn in revenue.
Mrs Joss said she was looking forward to 2021 with optimism.
“I honestly feel like there’s a shining light at the end of the tunnel,” she said.
“I feel so thankful to be surrounded by incredibly talented, hard-working and passionate staff members. They have shown overwhelming dedication.
“We’ve navigated the storm and are getting ready for expansion, growth and investment.”
