Unite strikes deal with Magna over Vauxhall plants' future
13th October 2009
After weeks of extensive negotiations, an agreement on the
future of the UK Vauxhall plants has been reached between Unite,
the biggest UK union in car and components manufacturing, and
Magna, the Canadian auto parts company and preferred bidder for
General Motors' European operations.
Unite described the agreement as a fairer deal for the UK,
giving the plants at Ellesmere Port and Luton improved prospects
for the future.
Tony Woodley, joint general secretary of Unite, said: "This
agreement removes the uncertainty surrounding our plants and our
people's jobs. It gives both plants job security and a future
through to 2013, providing a good basis for a long-term future
beyond that.
"Production at Ellesmere Port will grow significantly from the
level originally proposed to nearly 148,000 units, with full
capacity over two shifts, and there is agreement that Luton will
remain a key manufacturing site. Some 600 jobs that would
otherwise have been lost will be preserved, but equally as
important, Magna has agreed to no enforced redundancies.
"Agreement has now been reached with the workforce in this
country. We would urge that each and every government
involved in the European operations, including that in the UK, now
wastes no time in finalising the financial contribution which they
will make to this business."
Derek Simpson, joint general secretary of Unite, added: "When we
started off this process, we made it clear that we were seeking a
fairer arrangement for the UK plants, and that is what has been
achieved.
"The UK government, chiefly the prime minister and Lord
Mandelson, has been pivotal to reaching agreement today.
Their support has ensured we can preserve and maintain the 25,000
jobs in manufacturing and services and the 403 components companies
which depend on Vauxhall, and would have been at serious risk had
agreement not been reached.
"This is testimony to the success of the government's approach,
which is not to stand idle and let the market prevail, but to
intervene to protect the best in British industry.
"Unite thanks them for their work because through their efforts
they have made sure that our plants can have a future."
The agreement struck between Unite and Magna states that:
- Ellesmere Port, subject to maintaining its competitive
position, will produce the next generation Astra (set for
2016)
- the Luton van plant will be maintained as a key site within
Magna's UK portfolio, and confirms that Magna will seek "any other
possibility on product" for the plant
- there will be no compulsory redundancies at either UK
plant
- two shifts at Ellesmere Port with volume agreed at 147,500 by
2011 irrespective of demand fluctuations
In return, the workforce will contribute through cost-saving and
efficiency measures, including a two year pay freeze (although
weekly working hours will rise helping to bridge the earnings gap)
and increased contributions to the car purchase scheme of £20 per
month.
Talks between Magna and the works councils of the other European
nations continue.
ENDS
For further information, please contact Pauline Doyle on 07976
832 861
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