Shepherd Construction has said it will replace its directly employed workforce of 120 tradespeople with subcontractors, reports the Construction Enquirer website.
In a move that reflects the high cost of retaining direct employees in a weakened economy, the main contractor said workers would be laid off at both its East division, which covers Yorkshire to Cambridgeshire, and the West division, extending from Manchester and Liverpool in the north west to the Midlands.
In a statement to the York Press, Shepherd said trades employment will now ‘move to a complete subcontract basis, rather than maintain our own direct labour’, adding that the decision was made in spite of recent contract successes, ‘to ensure we remain competitive in response to the challenges presented by the economic climate and its impact on the UK construction marketplace.’
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