Unions urge Vauxhall talks amid job fears

Alan Jones
Tuesday 22 September 2009 13:22 BST
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Union leaders called today for urgent talks with the new owners of car giant Vauxhall amid fresh fears for job losses in the UK.

Tony Woodley, joint leader of Unite said he had "growing concerns" over the future plans of Canadian car parts giant Magna, which is buying the European business of General Motors, including the two Vauxhall plants at Ellesmere Port and Luton.

A report in a German newspaper today claimed that Magna had plans to cut 1,400 jobs at Luton and Ellesmere Port, although it made clear that no final decision had been taken and that discussions were continuing.

Mr Woodley repeated a warning he gave at the TUC Congress in Liverpool last week, saying: "At last the truth is out about Magna's intention towards the UK plants at Ellesmere Port and Luton. If these plans to slash jobs at both sites and cut the volume of cars produced at Ellesmere Port are pushed through, then make no mistake, Vauxhall will cease to operate in this country in six years time.

"We need an urgent discussion with Magna, along with our government, so that it can be made crystal clear to the company that their plans are unacceptable not just in terms of the survival of Vauxhall, but to the safe future of the entire UK car industry.

"Unite's concerns over Magna's plans are growing as it becomes clear that the cuts will not be shared fairly across GM's EU plants. Some 50 per cent of the UK workforce would lose their jobs, while only 16 per cent in Germany would go.

"Unite also believes that Magna's plans would safeguard a long-term future for the German plans while running down the UK operation."

John Cooper, senior union official at Ellesmere Port, has warned that Magna's business plan involved cutting 830 jobs at the plant.

Prime Minister Gordon Brown toured the Ellesmere Port factory ahead of his speech to the TUC last week, saying: "We are putting our faith in the future of Ellesmere Port, we are putting our faith in the future of the new model (Vauxhall) Astra that is about to appear."

Mr Woodley later told BBC News that the sale to Magna had been a "political stitch-up" because of the money offered to GM by the German government.

Countries with GM plants, other than Germany, were set to lose out "big time", with job cuts threatened in Spain and Belgium as well as the UK, he said.

"This is a wake-up call for Europe because we cannot allow this disgraceful political stitch-up to continue. There is no doubt there will have to be rationalising of plants, but you have to share the pain.

"We have asked our Government to continue their efforts and we are demanding a meeting with Magna."

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