Britain’s largest labour union, Unite, has called for guarantees over future investment into Vauxhall’s Ellesmere Port plant following the carmaker’s announcement that it is planning to make 400 people redundant as the plant cuts a shift (from two to one) amid slower demand for the Astra model made at the plant.
Unite said it was seeking high level meetings with the UK government and Vauxhall’s parent company PSA to discuss future investment and ensure that there were no compulsory redundancies.
A Vauxhall spokesman told just-auto that the company is hoping that the planned redundancies can be made voluntarily. Vauxhall says it will consult with employee representatives and will look for potential opportunities to minimise the impact of proposed headcount reductions. “This consultation will take place over a 45 day period in line with legal requirements,” Vauxhall said.
Coming days after last week’s job losses at BAE Systems, Unite described the Vauxhall announcement as another ‘huge loss’ to the north west economy which would be felt throughout the supply chain.
Unite general secretary Len McCluskey said: “This news is extremely difficult to take. To lose 400 skilled jobs at Vauxhall, albeit on a voluntary basis, is a major blow to the automotive industry and its supply chain. It is also another huge loss for the north west economy.
“Quite clearly, economic concerns are having a serious impact on consumer confidence. When people feel insecure about the future they do not invest in expenditure like a new car.
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By GlobalData“Our priority now is to support our members and protect this plant. We are calling for meetings with the highest levels of the parent company PSA to ensure that there are no compulsory redundancies and that our plant continues to attract much needed investment. That includes removing the uncertainty about a new model and clarity on Ellesmere Port’s future.
“But we also appeal to the government for its assistance. This industry urgently needs economic and trading certainty so that it can build for a strong future in the UK. We ask that ministers give PSA and other manufacturers a clear signal that government will do all it needs to do to support this crucial sector through the Brexit process.”