Vauxhall Ellesmere Port goes down the pan - 21st Feb 2009 10:57pm
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5780613.ece
CAR industry sources last night named Vauxhall’s Ellesmere Port plant on the banks of the Mersey as the one a union boss claims faces imminent closure, with the loss of 6,000 jobs.
On Friday Tony Woodley, general secretary of Unite, ignited a fierce row with Lord Mandelson, the business secretary,when he said an unnamed car plant would be closed “within the next couple of days” if ministers did not arrange a bailout with taxpayers’ funds.
GM, Vauxhall’s American owner, has said it plans to cut 47,000 jobs worldwide this year because of the collapse of car sales since the onset of the economic slowdown.
Ellesmere Port employs about 2,000 workers, but Unite’s leader claims two other major suppliers may also be forced to close, leaving a further 4,000 jobs under threat. The plant opened in the early 1960s and builds the Vauxhall Astra.
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One senior car industry source named Ellesmere Port as the plant identified by Woodley, but stressed it was unlikely it would close.
“This is being hyped up,” he said. “We just don’t believe the government will allow the plant to close.”
The majority of posts on industry internet chatrooms also suggest Ellesmere Port is the plant to which Woodley was referring,though a Vauxhall spokesmandenied that it was at risk.
On Friday Mandelson accused Woodley of spreading “rumours”, adding that the speculation could “destabilise a company or industry and bring about the very outcome we are seeking to avoid”.
Andy Burnham, the culture secretary, added to the criticism of the union leader yesterday, saying: “It’s irresponsible really to put an unfounded rumour of that kind into the public domain. It’s quite clear to anybody with eyes and ears that the car industry is facing a very difficult time.”
Woodley is embroiled in a struggle with his rival Derek Simpson for control of Unite. Union members are deciding on who should be their next leader, and the deadline for votes is early next month.
A Unite spokeswomen refused to be drawn on the name of the car plant. The union expects up to 100,000 car manufacturing jobs to be lost in the current recession.
Jaguar Land Rover has already announced 1,000 redundancies. Nissan is planning 1,200 job cuts and BMW said 850 posts would go at the Mini plant near Oxford.
Last month’s £2.3 billion government bailout for the car industry included guarantees to unlock loans of up to £1.3 billion from the European Investment Bank, plus a further £1 billion in government loans for green-vehicle investment.
CAR industry sources last night named Vauxhall’s Ellesmere Port plant on the banks of the Mersey as the one a union boss claims faces imminent closure, with the loss of 6,000 jobs.
On Friday Tony Woodley, general secretary of Unite, ignited a fierce row with Lord Mandelson, the business secretary,when he said an unnamed car plant would be closed “within the next couple of days” if ministers did not arrange a bailout with taxpayers’ funds.
GM, Vauxhall’s American owner, has said it plans to cut 47,000 jobs worldwide this year because of the collapse of car sales since the onset of the economic slowdown.
Ellesmere Port employs about 2,000 workers, but Unite’s leader claims two other major suppliers may also be forced to close, leaving a further 4,000 jobs under threat. The plant opened in the early 1960s and builds the Vauxhall Astra.
Related Links
One senior car industry source named Ellesmere Port as the plant identified by Woodley, but stressed it was unlikely it would close.
“This is being hyped up,” he said. “We just don’t believe the government will allow the plant to close.”
The majority of posts on industry internet chatrooms also suggest Ellesmere Port is the plant to which Woodley was referring,though a Vauxhall spokesmandenied that it was at risk.
On Friday Mandelson accused Woodley of spreading “rumours”, adding that the speculation could “destabilise a company or industry and bring about the very outcome we are seeking to avoid”.
Andy Burnham, the culture secretary, added to the criticism of the union leader yesterday, saying: “It’s irresponsible really to put an unfounded rumour of that kind into the public domain. It’s quite clear to anybody with eyes and ears that the car industry is facing a very difficult time.”
Woodley is embroiled in a struggle with his rival Derek Simpson for control of Unite. Union members are deciding on who should be their next leader, and the deadline for votes is early next month.
A Unite spokeswomen refused to be drawn on the name of the car plant. The union expects up to 100,000 car manufacturing jobs to be lost in the current recession.
Jaguar Land Rover has already announced 1,000 redundancies. Nissan is planning 1,200 job cuts and BMW said 850 posts would go at the Mini plant near Oxford.
Last month’s £2.3 billion government bailout for the car industry included guarantees to unlock loans of up to £1.3 billion from the European Investment Bank, plus a further £1 billion in government loans for green-vehicle investment.