Angry workers claim they have been 'sold down the river' after a Keighley company announced redundancy plans - just weeks after trumpeting a £3 million investment in new technology.

Market-leading woven labels manufacturer HH Calmon told 200 workers at its Parkwood Street factory that it would need to make redundancies following introduction of the new machinery.

Workers have not yet been told how many jobs will go, but some fear up to 40 or 50 redundancies.

One worker, who asked not to be named, said: "The company has asked for people to consider voluntary redundancy. They didn't do that last year when 27 jobs went, but we believe it is normal practice when around 20 per cent of the workforce could go."

He said: "We believe we have been misled by the firm. We were given the impression we were doing well, and everyone has been working hard and putting in extra hours. Now we just feel betrayed. There is a lot of uncertainty and bad feeling."

Calmon, which was sold to the Swedish Nilorn Group by former owner Tony Lee a year ago, is the UK's largest supplier of woven and printed tickets to the fashion and clothing industry. It has operations in Portugal, Hong Kong, India, the USA and the Dominican Republic, and employs 400 people world-wide.

The Keighley plant produces more than six million woven labels and four million litho-printed labels a week.

The Calmon Group had a turnover of £10 million in the UK and £25 million worldwide last year, and a growth of 19 per cent.

A memo circulated this week to Keighley's 200-strong workforce by group chief executive Phil Gordon confirmed the redundancies will take effect by May 5.

"The company has embarked on this process only after a careful business review," he said.

"The investment in new machinery and redundancies is essential if we are to continue to remain competitive."

He said the company was committed to a full and open consultation process, and would hold one-to-one meetings with the staff affected.

"At the same time, in an attempt to avoid compulsory redundancy, the company is prepared to consider requests for voluntary redundancy.

"It will be our intention to inform interested staff as to the outcome of their applications for voluntary redundancy by March 29.

"Only then will we be able to assess the need for any compulsory redundancies."

Mr Gordon said: "Usually redundancies come when a company is struggling, but in our case it is the opposite. We are doing very well, and look like having another good year. But the new equipment does the job faster and more productively, which means we need less people.

"It is an investment for the future, and the redundancies are being made to help safeguard the jobs of those who will remain with the company."

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