Burberry in talks with GMB over new business venture

The GMB union has proposed setting up a sample prototype company in the Burberry factory in Treorchy which faces closure. The union would like Burberry to act as project manager. The factory would produce small runs, of up to 500 garments, enabling a quick turnaround of clothes.

The GMB met Burberry yesterday to discuss the situation. Burberry's plans to relocate production overseas is expected to lead to the loss of more than 300 jobs.

According to the union, only about one or two such factories exist in the UK, but they are a lot smaller. If the venture went ahead in Treorchy, it would be the largest of its kind in the UK.

A GMB spokesman said: 'We believe this idea has huge potential.'

The union has been working closely with the Welsh Clothing and Textile Association and has received a good response on its web site from retailers interested in using the facilities at Treorchy, if the proposed business plan went ahead. The union is also exploring the possibility of assisting the workforce in forming their own co-operative.

Following yesterday's meeting, described by the GMB as 'positive', a task group has been set up, including representitives from the Welsh Assembly, Swansea University and the Welsh Clothing and Textile Association, to look into the proposals.

A Burberry spokesman said: 'We are in discussion with the Welsh Clothing and Textile Association investigating how we might help them develop a new business idea at the Treorchy site.'

The luxury clothing brand came under fire recently from Welsh secretary Peter Hain, who said he understood why the Treorchy workers felt cheated, because 'Burberry's international success is based firmly in its 150-year-old roots in Britain.'

Prince Charles and Hornblower actor Ioan Gruffudd also joined politicians and royalty in condemning the company.

Gruffudd wrote to Burberry chief executive Angela Ahrendts asking that she 'choose an alternative course of action.' In a letter to the actor, Ahrendts said a final decision had not been made and options were still on the table.

However, according to the GMB spokesman, Burberry's board is increasingly concerned over its high-profile campaign and the negative publicity it is attracting as a result of the proposed factory closure.

The GMB is holding a public meeting tonight in Treorchy and will be meeting again with Burberry on Monday. The first Task Group meeting will be held next Wednesday.