Stable industrial relations in the UK remain “essential” for the thriving British auto sector to maintain its current success against a backdrop of European economic difficulties, says a British Automotive Council member.
The UK is home to a significant number of OEMs and suppliers, many of whom view the relatively harmonious industrial relations landscape as particularly attractive.
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“As we portray ourselves to the rest of the world – a stable and efficient workforce is essential and any evidence of strikes will be taken negatively,” purchasing risk and supply chain manager, Jaguar Land Rover and Supply Chain Group (Automotive Council) member, Michael Mychajluk, told just-auto at today’s (18 September) SMMT Open Forum in the UK city of Worcester.
There have been relatively few vehicle manufacturer walk-outs in the UK – linked perhaps to the deep and prolonged recession which has hit the country since 2008 – with Mychajluk contrasting this environment against the current industrial unrest sweeping South Africa that has seen two colossal automotive strikes cripple the industry in the past few weeks.
“South Africa has a cycle of strikes – we have broken that cycle in this country some years ago,” he said. “We have some of the strongest industrial relations in Europe.”
The UK has also proved attractive for global OEMs due to the country’s wage structure – possibly again aided by the ongoing depressed European economic climate.
“One of the selling points historically, is wage inflation in the UK has been relatively low,” Automotive Investment Organisation, business development director, Will Harman, told the SMMT Open Forum.
“If you look at some of the low-cost economies such as Eastern Europe and China, wage inflation has been very rapid.
“Customers are becoming more intelligent about assessing risk when they source.
“If the past is a guide, the UK is a relatively safe bet compared to what happens in other countries.”
