WORKERS at Accrington’s Caligen Foam have been made redundant and it is feared more job losses are in the pipeline .
More than 20 people – including the health and safety officer and union representative – have been axed, some of whom have worked at the Broad Oak site for almost 40 years.
The company, which produces foam products, has moved its industrial division to Middleton, with up to 12 job losses, and a further 12 jobs have been lost in the "peeling" department.
An employee, who wished to remain anonymous, said: "There are only around 100 workers left here and nobody knows if they’re going to have a job at Christmas.
"The lack of work and the cost of electricity has been blamed. The employers are even complaining about the amount of energy we are using on the tea breaks between 10am and 10.15am each day. They said the energy consumption of electricity zooms up when people have a brew.
"They have stopped all the night shifts and deployed staff to other shifts and we have been told there is a possibility of a pay freeze in January and extending the Christmas holiday for staff.
"The next 12 months will be make-or-break for the company."
A company spokeswoman said: "This follows a period of difficult economic trading. As a result of this announcement, eight to 12 jobs will be lost, with 12 transferred to the site in Middleton.
"There will also be 12 people made redundant in the peeling division, six of whom have taken voluntary redundancy.
"A pay freeze was discussed at the team briefing but it is not confirmed. It is just one of the options that may have to be taken.
"Energy consumption is something we monitor on an ongoing basis and is an easy way of making significant savings rather than making further redundancies."
Hyndburn Council leader Peter Britcliffe was disappointed to hear the news, saying: "This is really bad but I’m afraid it’s the type of news we are going to receive increasingly over the coming months.
"What a horrible time to have lost a job, just coming up to Christmas."