News

Local workers at GM’s IBC plant received some mixed news yesterday.

As was widely anticipated, GM Europe announced a round of job cuts including 369 job losses at the local Luton IBC plant – essentially taking out the night shift as part of the restructuring plans and in order to eliminate over capacity.

Nick Reilly, the head of GM Europe said that the Vivaro van would continue being built at the IBC plant in Luton until 2013, after which GM would "investigate new business opportunities".

No job losses at the Ellesmere Port plant were announced, though an additional 150 sales and support jobs will be lost across the UK including some at the corporate HQ in Luton.

However, the company also announced plans to go on a product offensive and invest nearly £10 billion over the next five years in its Opel/ Vauxhall European range – showing a long term commitment to the UK and European vehicle industry.  The investment forms part of a plan to break even within two years.

Across the whole of Europe GM announced 8,300 cuts, so the UK proportion is considerably less than other countries.  We all know that the company needs to restructure and put in place a clear business plan for the future that will help secure long term jobs in Luton, across the UK and indeed the whole of Europe.  These moves – though painful – are a step towards securing the long term viability of UK operations and (I hope) are a means to securing long term jobs in Luton.  The alternative, which we all feared a few months ago, of the plant closing down altogether has been avoided.

I have been in close contact with GM for many months, ever since the current uncertainties surfaced and I have always been impressed by the honesty of management and workers and by the co-operative nature of the relationship between unions and management.

I am aware that all sides are doing everything they can to ensure that the job cuts are done in as fair and sensible way as possible, that the redundancy packages will be generous,  and that the majority (or even all) the job losses will be voluntary.

If elected, I commit to working with GM management and the Unions to do everything I can to leverage my business experience and help secure jobs in Luton.  I know that Ken Clarke (pictured here with me at  the IBC plant late last year) is similarly committed to ensuring the long term viability of the UK vehicle industry.