Thursday, February 5, 2009

Ford to make 850 workers redundant

According to BBC car manufacturer Ford is also affected by the recession that started in the US more than a year ago. 

UK operations will soon have to be carried out with a staff that will consist of 850 fewer workers. As it was claimed the firm expects these redundancies to be met voluntarily. 

The problem is that Ford promised to increase the payments by 5.25%. Yet, as the GMB union stated, "they are going back on the agreement." 

Most of the redundancies will concern the plant in Southampton, while the rest will affect sites in the following regions: Basildon, Brentwood and Dunton, in Essex, Daventry in Northamptonshire, Halewood on Merseyside and Bridgend in south Wales. 

One can wonder whether the sudden change of Ford's decision will result in people's taking industrial action or not. 

According to Justin Bowden, GMB union officer, "Ford of Europe made a profit in excess of £1bn in 2008." 

That is why the workers expected to be paid more as this success can only be associated with the workers' contribution as well as the rate of inflation. Contribution or not, Ford does not seem to give in. 

Representatives of Ford said that only the "unprecedented" economic situation is to blame for this situation. As John Fleming, Ford of Europe chairman and chief executive, said: "As demand across the industry continues to fall, we are facing some immediate and major challenges." He thinks these decisions have to be made quickly as only those quick enough to make up their minds can survive the recession. 

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