Unions press for urgent talks with Jaguar bidders

Aug 4 2007 by Tony McDonough, Liverpool Daily Post

UNION leaders representing workers at Jaguar Land Rover are seeking urgent meetings with possible bidders for the brands, following reports that owner Ford is seeking to secure a sale by as early as September 30.

A report in the New York Times yesterday claimed Ford was looking to agree a deal, possibly worth up to £1.5bn, with one of a number of companies who are believed to have shown an interest in Jaguar Land Rover (JLR), by the early autumn.

Potential suitors are believed to include India-based Tata Motors, which it was reported earlier in the week was about to start due diligence of JLR’s books. Also in the frame, according to the New York Times, is Cerberus Capital Management. Cerberus is about to acquire the Chrysler Group from DaimlerChrysler, which includes the Jeep brand – Land Rover’s main global rival.

Watching closely are JLR’s 2,400 workers at the Hale- wood plant in Merseyside. They are employed assem- bling the Jaguar X-Type and the new Freelander 2 model. The division employs a total of 16,000 people across the UK. Last night, Ford described the US reports as “speculation” and declined to comment further.

However, the joint general secretary of the Unite union, Tony Woodley, said it was pressing for meetings with potential bidders as soon as possible.

He said: “We need to talk to the bidders because what Ford might consider to be acceptable in the bids might not necessarily be acceptable to us or our members.

“While the company may only be thinking about price, we are looking for assurances about safeguarding the future of the plants, job security and pension security.

“The idea that we would not be involved in some way in the selection process is unthinkable. I can promise everyone that myself and my colleagues are right on top of this.”

Mr Woodley added he would be amazed if Ford were to consider selling JLR to Cerberus Capital Management: “Jeep is Land Rover’s biggest competitor and so such a deal would have no business logic at all,” he said.

Ford bought Jaguar for £1.6bn in 1989, and it is has invested billions of pounds since in a bid to improve its sales and financial performance.

tonymcdonough