Bill Gleeson: Flexible approach needed to stay ahead of competition

A HUGE amount of effort and goodwill has been invested into Jaguar Land Rover’s Halewood plant by both management and workforce over the past decade.

Anybody who has been around long enough knows the degree to which productivity and quality standards have been transformed at Halewood.

While under Ford ownership, Halewood was deemed to be the group’s most productive plant in the world.

Now current owner Tata Motors is part way through introducing a new model, the Range Rover Evoque, which comes to market next year. There has been a huge marketing push to support the new model and as a result many orders have been placed. Hundreds of jobs have been created at Halewood to handle those orders.

All seems to be going well.

But despite all of the progress and upbeat talk, it is clear from speaking to people who work there, or have done so in recent times, that relationships between management and workers are not completely harmonious. The latest potential dispute about the timing of Halewood’s annual summer shutdown is a case in point.

The proposal is that the shutdown takes place in late May-early June instead of the more traditional late July-early August period.

Management understandably, wants to make sure it’s all hands to deck to handle the expected high levels of production in the run-up to next summer’s big launch date. On the face of it, this is common sense and good planning.

Nevertheless, workforce reservations about the impact of the proposal on staff are equally understandable. An early summer shutdown is less convenient for those with families who would ordinarily choose to take annual holidays when the kids are off school.

But business is business. In today’s global market, British car factories struggle to compete at the best of times, especially when it comes to price.

As a result UK car plants need to compensate for being expensive by being more productive and flexible. It is in everybody’s interests, including the workers and their families, that production is optimised during the launch phase.

It would be disastrous for the company and the region’s workers should the blame for shortages of the new Evoque be pinned squarely on Halewood’s workforce.

On the other hand, from those anecdotes that I occasionally hear, it seems management could do more to win favour with the workforce.

READING between the lines of what was a technical statement by Lloyds Banking Group yesterday, it appears that the part state-owned bank is on course to make its first profit when it discloses results for the full year.

There is also evidence of some degree of normality returning to the banking system as Lloyds revealed it has repaid £7bn of liquidity support to the Bank of England.

This news, taken together with the fact that America’s AIG will repay billions of dollars of bail out loans to America’s Federal Reserve, can be interpreted as indicating that global financial conditions are well along the road to full recovery.

But let’s not forget who is paying for this. Its the average man and woman in the street with a home loan.

The Halifax and Cheltenham & Gloucester owner Lloyds is now able to charge mortgage borrowers more in interest as more fixed rate and discounted deals come to an end.

Essentially though, yesterday’s statement by Lloyds was good news.

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