Delphi begins talks over closure of Kirkby plant
MANAGEMENT at US-based car parts firm Delphi have begun a consultation exercise with unions over the potential closure of its Kirkby plant in Liverpool.
Unite The Union said that management at the plant began negotiations yesterday over the future of a design centre employing 39 engineers and a manufacturing plant employing 181 people. Union officials said that although the former looks safe for now, the latter seems likely to close by the end of next year.
Delphi, which is based in Troy, Michigan, undertook a major reorganisation in its home market last year after filing for for Chapter 11 bankruptcy protection. Figures for a newly-created successor firm for the first quarter of 2010 show that in the three months to March 31, 2010 it received income of around $3230m (£205m) on sales of $3.4bn (£2.2bn).
Roger Maddison, Unite’s national officer for motor components, said: “This is another disaster for British manufacturing. Should the company’s plan go ahead, Unite will do everything it can to ensure our members receive generous redundancies from this global player.
“Our members have worked exceptionally hard to improve efficiencies and quality over the past few years to secure a future in Kirkby, but once again a UK plant has failed to secure new work against competition from lower cost economies.”
Mark Shost, a production line executive for Delphi’s Powertrain Electronics business, said: “In an effort to address an extremely competitive environment, Delphi has entered discussions with unions and employees at its Liverpool site to determine the future of the company’s Liverpool manufacturing plant.
“Employees at the Liverpool site have been exceptional in their support of quality and efficiency. The site has also received strong cooperation from its unions. However, the competition in the automotive industry is exceptionally intense and the site has not been able to secure new work on a competitive basis.
“Accordingly, as current customer contracts expire, the site has not been able to secure replacement business that would allow the plant to remain operational in the long term.”
