UK labour union Unite has reacted angrily to today’s (15 January) news that Robert Bosch plans to close its Cardiff auto electrical parts factory next year and move production to Hungary, resulting in 900 redundancies.
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Unite said it would hold a mass meeting tomorrow (Saturday 16 January) at the south Wales plant during which it would outline what support it intends to give its members at Bosch. The union admits the workforce is “devastated” at the supplier’s plans to halt Welsh production.
“Since October last year, Unite has been seeking alternatives to the closure of the site, but the company has not supported our proposals,” said Unite regional officer David Lewis. “This is a terrible blow to 900 workers and their families. We will now vigorously campaign for the best possible deal for the workforce.”
Bosch defended its position, saying that reports of the plant’s demise did not take into account the overall situation. “We are talking about applying economies of scale,” a Bosch spokeswoman told just-auto. “Unfortunately, the Cardiff plant will not be required – it is not commercially viable.
“It does not make sense if you have lines running that are not fully loaded and that is what they are doing by shifting to Hungary. It is a combination of low demand due to the recession, but also due to changing requirements of what customers want – they want smaller and more efficient engines. What we are producing is a classical alternator.”
The spokeswoman also refuted claims the move was a simple way to drive down labour costs, insisting there was “a bigger picture.” The Hungarian plant already produces alternators, amongst other products.
Bosch’s decision came after a two-year feasibility study to evaluate whether or not a new alternator line could be made in Wales. “The analysis showed a new product could not be competitively manufactured in Cardiff,” the company said.
Bosch Group expects to report an operating loss for 2009 – its first negative operating result in 60 years.
