The trade union Amicus has claimed that 900 workers at Honda’s British factory in Swindon are about to lose more than £63 a week as the company lays off an entire shift.
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Honda’s announcement that it is scaling back production at Swindon, which makes the Civic hatchback and CR-V SUV, from the beginning of June will mean that 900 workers are about to lose a 17% pay allowance which amounts to £3,300 per year, the union said.
The news came in the middle of ACAS (the UK industrial relations conciliator) negotiations with Amicus on pay and pension conditions at the plant. Honda wants to raise the retirement age from 60 to 62 to counter a £40 million pension fund shortfall.
Amicus said that 150 to 200 temporary workers at the plant would lose their jobs to make way for the full-time Honda workers whose shifts have been cut.
Amicus joint general secretary Derek Simpson said: “Honda’s claims that these moves are to maximise efficiency are highly dubious as are the supposed levels of loss and poor productivity at the plant.
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By GlobalData“In fact, production levels Swindon are rising and are up 7% on last year. It demonstrates that Honda are only interested in cutting costs by slashing workers’ wages.
“Honda says it sells ‘the Power Dreams’ and ‘is determined to maintain its harmony with the individual, the community, and the natural environment’ – sadly their mission statement doesn’t extend to their loyal workforce, hundreds of whom are only recently recruited.”
Amicus is also concerned about Honda’s commitment to other supply chain companies in the area including the South Marsdon Distribution Centre (SDC) where the union is attempting to secure recognition rights.
Amicus has rejected a 2.7% pay offer made by Honda. The union has also rejected an extra 0.5% to be paid selectively on merit, saying it should be shared by all 4,000 workers at the plant. The ACAS-arbitrated negotiations are due to resume next Tuesday.
On Monday, the Times newspaper reported that Honda had threatened to close its British car plant unless worker productivity improved.
Honda denied the claim, saying that it had only sought to explain the company’s difficult financial situation in a letter to workers ahead of the ACAS negotiations.
The British plant, established in 1986, has lost £390 million on the £1.5 billion invested to date, Honda told workers in the letter.
