News
Tuesday, October 13, 2009
I am pleased and relieved to hear the news today that Unite union has struck a satisfactory deal with Magna – the likely new owners of GM Europe – that is likely to safeguard jobs across the UK and especially here in Luton. This news will be welcomed by hundreds of local families who have lived through a painful period of uncertainty.
Credit should go to the unions for their tenacity and flexibility, to Magna for their recognition of the long term viability of UK operations, and to the entire GM workforce for their efficiency and effectiveness over a period of many years.
The deal shows how management, unions and workers can come together in difficult times to secure jobs - and involves cost savings and efficiency measures, and a two year pay freeze.
This is precisely the kind of 'we're all in it together' type attitude of co-operation that George Osborne and David Cameron talked about at Tory Party Conference last week.
This path will not be easy, but it is a pragmatic, realistic and honest approach to doing business in a downturn. I applaud the investors, the unions and the workers for their herculean efforts to secure jobs.
Picture, below, is of Nigel Huddleston with Vicky Ford MEP signing the GM/ Unite 'I'm backing Luton workers' shirt on the back of the Vauxhall Ampera stand at Tory Party Conference:
The press release from unite can be found, below:
Unite strikes deal with Magna over Vauxhall plants' future
After weeks of extensive negotiations, an agreement on the future of
the UK Vauxhall plants has been reached between Unite, the biggest UK
union in car and components manufacturing, and Magna, the Canadian
auto parts company and preferred bidder for General Motors' European
operations.
Unite described the agreement as a fairer deal for the UK, giving the
plants at Ellesmere Port and Luton improved prospects for the future.
Tony Woodley, joint general secretary of Unite, said: "This agreement
removes the uncertainty surrounding our plants and our people's jobs.
It gives both plants job security and a future through to 2013,
providing a good basis for a long-term future beyond that.
"Production at Ellesmere Port will grow significantly from the level
originally proposed to nearly 148,000 units, with full capacity over
two shifts, and there is agreement that Luton will remain a key
manufacturing site. Some 600 jobs that would otherwise have been lost
will be preserved, but equally as important, Magna has agreed to no
enforced redundancies.
"Agreement has now been reached with the workforce in this country.
We would urge that each and every government involved in the European
operations, including that in the UK, now wastes no time in finalising
the financial contribution which they will make to this business."
Derek Simpson, joint general secretary of Unite, added: "When we
started off this process, we made it clear that we were seeking a
fairer arrangement for the UK plants, and that is what has been
achieved.
"The UK government, chiefly the Prime Minister and Lord Mandelson, has
been pivotal to reaching agreement today. Their support has ensured
we can preserve and maintain the 25,000 jobs in manufacturing and
services and the 403 components companies which depend on Vauxhall,
and would have been at serious risk had agreement not been reached.
"This is testimony to the success of the government's approach, which
is not to stand idle and let the market prevail but to intervene to
protect the best in British industry.
"Unite thanks them for their work because through their efforts they
have made sure that our plants can have a future."
The agreement struck between Unite and Magna states that:
* Ellesmere Port, subject to maintaining its competitive position, will produce the next generation Astra (set for 2016)
* the Luton van plant will be maintained as a key site within Magna's UK portfolio, and confirms that Magna will seek "any other possibility on product" for the plant
* there will be no compulsory redundancies at either UK plant
* two shifts at Ellesmere Port with volume agreed at 147,500 by 2011 irrespective of demand fluctuations
In return, the workforce will contribute through cost-saving and
efficiency measures, including a two year pay freeze (although weekly
working hours will rise helping to bridge the earnings gap) and
increased contributions to the car purchase scheme of £20 per month.
Talks between Magna and the works councils of the other European
nations continue.
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