Record-breakers: shoes like these have seen runners shattering all kinds of records for the past decade – thanks to the foam technology made in a Croydon factory. But now Zotefoams wants to move its manufacturing base to Vietnam
The foam for the super shoes that help star runners like Olympic champion Keely Hodgkinson break records is made in a factory off Mitcham Road. The company wants to move production to Vietnam and make one-third of its Croydon workforce redundant, while the borough’s Mayor refuses to do anything about it. EXCLUSIVE by STEVEN DOWNES
It’s a seemingly modest light industrial site not far from Mitcham Common. Yet the cutting-edge materials produced at the Zotefoams factory are credited with helping deliver up to 20 running world records in the last decade, thanks to innovative “super shoes” made by US sportswear giant Nike.
Now around 100 workers at Zotefoam’s Croydon factory face their own race for survival, as their employers want to make them redundant as they shift their foam manufacture to the Far East.
Zotefoam’s formal redundancy consultation process for around 100 staff began last week.
Yet Croydon’s Mayor, Jason Perry, refused to convene a meeting of workers, unions and councillors to look for ways of saving as many jobs as possible. And when someone else did what Perry refused to do, and called a meeting, Croydon’s failed Mayor failed to show up.
Part-time Perry likes to boast of his credentials as the owner of a plastic guttering business. “The small businessman is really a small-minded businessman,” according to one Zotefoams employee who faces losing their job, and is disappointed with the elected Mayor’s refusal to even try to help.
Zotefoams, or its predecessor companies, have been based in Croydon for more than 100 years. The company supplies lightweight, polymer foams across three market sectors, with Boeing and Airbus using their materials in aircraft seating. Other products are used for hoses, ducting and window seals. Their foams have been deployed in the footballs used by the Premier League (the company logo even looks like a football).
But it is the deal Zotefoams signed as exclusive supplier to running shoe manufacturer Nike for their go-faster trainers with the top-secret foam that has seen the company’s profile, and profits, soar in the last decade. The energy efficient superfoam in the Nike shoes is widely credited with making possible the sub-two-hour marathon run by Kenya’s Eliud Kipchoge.
A pair of the running shoes will set you back close to £200 in the local sports shop if you fancy trying to train like Olympic champion Keely Hodgkinson. But whatever the profit margin might be on those super shoes, it will be even bigger for Zotefoams if they move their factory, as they intend, to Vietnam.
“Zotefoams is not a failing company. They increased profits last year by 34%,” said Helen O’Connor of the GMB. Zotefoams’ revenue for the six months to June 30 this year was £95.2million.
“Despite this they are abandoning the workers in Croydon who are responsible for this success. The workers now face the threat of redundancy and production moving to Vietnam.
“These are high-quality manufacturing jobs – the type the country is crying out for.
Doing a runner: the superfoam in Keely Hodgkinson’s trainers could soon be made on the cheap in Vietnam
“Some people have worked there for many years, yet the employer is making them redundant with the bare minimum redundancy package.
“We will demand the government and local politicians step in to stop these job losses.”
Except, when the GMB wrote to Mayor Perry seeking his support at a cross-party meeting, he turned them down. In fact, none of Croydon’s 28 Conservative councillors bothered to show up for the meeting last week.
Zotefoams’ proposals are part of a restructuring of their business in Croydon, as they look to offshore their foam manufacturing. In the past, Nike has been severely criticised for using cheap labour in Far East sweatshops to make their top-of-the-range sports gear.
Zotefoams’ proposed cuts will reduce their Croydon factory’s workforce by one-third.
In a letter sent to all 70 Croydon councillors and Mayor Perry, the GMB union said: “As you know, decent well-paid jobs such as these are desperately needed in the area. We think this is an opportunity for the government to consider contracts in the defence and aerospace supply chain to prevent further job losses.”
The GMB also accuse Zotefoams of “attempting to sideline” them as the staff’s recognised union, “to prevent meaningful consultation”.
A meeting of workers, their union and councillors was arranged for last Wednesday at Croydon Town Hall. Perry wouldn’t have even needed to put his running shoes on to get to the meeting on time.
“Please come along and hear directly from the workers and the GMB about how you can help,” the union said in its plea to Perry.
But Croydon’s £86,000 per year Mayor decided not to bother.
Instead, he sent a snotty little note to the union: “While I completely understand your request for the council to host a cross-party meeting, I do not think it would be appropriate for us to do so.
“This is ultimately a matter between a private employer, the employees affected and those representing them, including GMB. The council has no formal role in that process, and stepping in as a convenor would risk creating a precedent for council involvement in private employment and corporate matters.”
‘Not appropriate’: Jason Perry
So despite all his PR stunts and photo ops with his mates at Croydon BID and with multi-national Westfield, Mayor Perry’s not interested in jobs, or business, in Croydon.
In Perry’s absence, the meeting went ahead, and was attended by two Green Party councillors and 12 Labour councillors.
Councillor Stuart King, the leader of the Labour opposition group at the Town Hall, arranged the meeting, where the councillors heard from union officials and Zotefoams employees.
“Croydon’s Labour councillors are alarmed by the threat of redundancies at Zotefoams,” King said.
“When we met with employees and their union, the GMB, we pledged our support and to do what we can to encourage the company to rethink their plans and retain these important local jobs.”
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Read more: Borough’s motorists will be forced to pay for Perry’s mistakes
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