VAUXHALL’S decision to put workers at its Ellesmere Port plant on to a four-day week was last night branded a “bitter pill to swallow” by union leaders.
Providing the economic situation does not worsen the reduction of a fifth in working hours is likely to stay in force until the plant, where around 2,200 people work, starts production of the new Astra model in September.
Workers’ hours will be reduced from 38 hours a week to 30 hours as the company attempts to cut costs following a decline in car sales brought on by the credit crunch.
Employees will receive 30 hours normal pay and four hours base pay even when the plant is on “down” days (not producing cars).
A spokesman for Vauxhall said: “Fundamentally we are doing all we can to avoid redundancies, we don’t want to lose our valuable workers.”
Last night Unite union’s joint general secretary Tony Woodley called on the Government to subsidise workers being put on short time.
Lobby group the North West Automotive Alliance (NWAA) said Vauxhall had made a sensible decision that was good for the company’s short and long term future.
Neil Barlow, chief executive of the NWAA, said: “We should not be surprised by this announcement.
“Going to a four-day week is the best thing in the short term and long term for the plant.
“It’s probably the best move for them. If you look at the plant it is still gearing up for the launch of the new Astra, so they don’t want to make people redundant.”
The announcement follows an extended stoppage over the Christmas period when workers’ annual two-week break was increased to a month.
Workers have also been offered sabbaticals, but it is understood there has been little take up.
Last night Mr Woodley said: “Reducing the plant’s capacity in the short term is a difficult pill to swallow for our members and that’s why we are battling with the Government at the moment to give a direct subsidy to workers for short-time working. The most important issue is having a long term future, and that’s my priority.”
Vauxhall, which is owned by US car giant GM, has called on the Government to help improve consumer access to credit to help ease car purchases.
A Vauxhall spokesman said: “GM UK reached an agreement with the Trade Unions on February 2 with regard to the introduction of working time reduction arrangements aligned to the company’s significant cost reduction challenges for 2009.
“Employees at GM’s Ellesmere Port plant have been advised there will be a reduction in working time from 38 to 30 hours per week. Employees will receive 30 hours normal pay and four hours base pay.
“This will be paid even if the plant is on a ‘down’ day (not manufacturing vehicles) as we balance supply with demand.
“The working time reduction agreements have been reached following extensive talks between senior GM management representatives from across all GM’s European Operations and senior Trade Union leaders.
“Dialogue has been constructive and supportive.”
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OPINION: PAGE 18
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