Mandelson hails Vauxhall jobs deal
BUSINESS secretary Lord Mandelson succeeded in forcing the new owner of Vauxhall not to cut jobs at Ellesmere Port.
But he said there was “some way to go” before the Government agreed to offer financial help to Magna.
He said: “I need to be convinced that the terms and conditions for the financing will be of the sort and standard that the Government expects when we put the taxpayer money into a company like this. We don’t sign a blank cheque.”
Staff at the car plant have agreed to a two-year wage freeze and other cost savings. Production is guaranteed until at least 2013, Vauxhall said.
The news comes less than a week after Vauxhall unveiled its new Astra model, which is being built at the Ellesmere Port site.
Vauxhall is part of General Motors’ European business which is set to be sold to Canadian car parts group Magna Inernational following GM’s near collapse and subsequent bail-out by the US government.
A Vauxhall statement said: “Following extensive and constructive dialogue between Vauxhall Motors, Magna International, UNITE and the British Government, we are pleased that the parties have secured an agreement that protects the jobs and prospects of the 5,000 Vauxhall employees in the UK.
“Both the Ellesmere Port and Luton manufacturing operations will retain security of production, increased in the case of Ellesmere Port to circa 148,000 on two full shifts and at Luton, maintained as a key manufacturing operation until at least 2013 with consideration being given to a future model at the plant beyond that date. There will be no enforced redundancies.
“Cost saving and efficiency measures will be implemented which include a two year pay freeze and other measures and past employee sacrifices will be recognised.
“This is very good news for Vauxhall’s UK operations and is the result of a tremendous team effort between leadership of UNITE and the management team at Vauxhall.”
Steven Broomhead, chief executive of the North West Development Agency welcomed the deal, which he said was “great news” for Vauxhall, the workers and the region’s manufacturing sector.
“Not only is this great news on the jobs front, but we are delighted at the output commitment to 148,000 cars per year. An increase on 2007 figures which ensures the plant will be operating closer to full capacity.
“The training funding which the NWDA has invested in the site will continue to drive the skills of the workforce and we will continue to work with Vauxhall on future developments at Ellesmere Port.”
