JohnCenaFan28
02-05-2009, 06:19 PM
Car giant Ford was warned it could face industrial action after announcing plans to axe 850 jobs and freeze pay because of the "serious economic situation" affecting the motor industry.
The Transit van plant in Southampton will be hardest hit, with between 400 and 500 jobs set to be lost by May, with a further 350 posts lost across the company through a restructuring of salaried staff.
Ford also announced that it wanted to "re-evaluate" this year's pay deal of 5.2%, saying that its business situation had worsened "significantly" since it was drawn up last October.
The announcement was made as figures showed new car sales slumped by more than 30% last month compared with January 2008. The 30.9% fall was the biggest monthly figure since 1974, said the Society of Motor Manufacturers and Traders.
The company said in a statement: "Such a serious step would not normally be contemplated but in the unprecedented circumstances the priority is to ensure a sustainable Ford Motor Company."
Unite attacked the announcement as a "betrayal" and warned that cutting workers' pay to meet redundancy payments could lead to industrial action.
Joint general secretary Tony Woodley said: "These proposals are completely unacceptable and a betrayal of Ford's loyal UK workforce. Ford are asking the workers to take a cut in pay to preserve jobs, but workers are asking themselves if their pay is being cut to pay for friends and colleagues to be thrown on to the dole."
The union warned that unless Ford reconsidered the plans, it will have "no option" but to ballot members on industrial action.
"Ford has reached a new low in corporate integrity. While their executives pay themselves handsomely and their European profits alone totalled 1.06 billion dollars in 2007/2008, they are using the challenging global circumstances to cut the jobs and pay of the workers who helped make them these massive profits.
"They must respect this pay deal. If they fail to do so, then we will have no other choice but to consult our members on how they wish to take to defend their jobs and pay," said Mr Woodley.
-Nova
The Transit van plant in Southampton will be hardest hit, with between 400 and 500 jobs set to be lost by May, with a further 350 posts lost across the company through a restructuring of salaried staff.
Ford also announced that it wanted to "re-evaluate" this year's pay deal of 5.2%, saying that its business situation had worsened "significantly" since it was drawn up last October.
The announcement was made as figures showed new car sales slumped by more than 30% last month compared with January 2008. The 30.9% fall was the biggest monthly figure since 1974, said the Society of Motor Manufacturers and Traders.
The company said in a statement: "Such a serious step would not normally be contemplated but in the unprecedented circumstances the priority is to ensure a sustainable Ford Motor Company."
Unite attacked the announcement as a "betrayal" and warned that cutting workers' pay to meet redundancy payments could lead to industrial action.
Joint general secretary Tony Woodley said: "These proposals are completely unacceptable and a betrayal of Ford's loyal UK workforce. Ford are asking the workers to take a cut in pay to preserve jobs, but workers are asking themselves if their pay is being cut to pay for friends and colleagues to be thrown on to the dole."
The union warned that unless Ford reconsidered the plans, it will have "no option" but to ballot members on industrial action.
"Ford has reached a new low in corporate integrity. While their executives pay themselves handsomely and their European profits alone totalled 1.06 billion dollars in 2007/2008, they are using the challenging global circumstances to cut the jobs and pay of the workers who helped make them these massive profits.
"They must respect this pay deal. If they fail to do so, then we will have no other choice but to consult our members on how they wish to take to defend their jobs and pay," said Mr Woodley.
-Nova