G&H Group blames job cuts on firms buying work

Building services and construction group G&H Group has accused other firms of buying work, and has blamed the tactic for 19 proposed redundancies at the company.

This week, the Bournemouth-based firm announced it had begun a consultation exercise with its 69 staff with a view to making cuts across all areas of the business.

A company statement said: “The jobs have been placed at risk due to the severity of trading conditions causing delays to project development schedules and 'destructive competition' from some firms bidding for work at zero or negative margins.”

Mark Allies, chief executive of the group, said: “We have held off for as long as possible but now must restructure, to reflect the current economic situation as many of our competitors have already done.”

In a separate move, George & Harding Construction was placed into voluntary liquidation last week.

Colin Harding is chairman of both companies, although the construction arm operates independently of G&H Group. He said: “We greatly regret the decision to place the company in voluntary liquidation. The next scheduled project was due to start in the first quarter of 2009.

“Unfortunately this project was abandoned two weeks ago because it was within the Heathrow third runway acquisition area. The company has also been the victim of a particularly sudden reverse in