MAN, who have their headquarters in Munich, have provided evidence that the euro zone financial crisis is hitting the common currency’s most powerful economy.
Their workers are facing shorter hours and lower pay. More than 5000 people are affected. In the first instance, the company expects the reduced hours to continue for six months and they will review it.
The blow is being softened by a government scheme for reduced hours work, and the Government makes up 60% of the lost income, in the case of MAN, another 30% is being found by changing the timing of workers bonus payments. Even with this, the workers going onto shorter hours are taking pay cuts.
Honda are to cut 800 jobs at their Swindon plant, Jaguar Land Rover have announced that they are going to create 800 production jobs at Solihull, as well as planning to build a new engine factory in Wolverhampton.
However, 200 of the 800 jobs are going to be supported by the Governments regional growth fund. This means that those 200 jobs will be on one year contracts which will be converted to permanent contracts should market conditions remain strong.
Renault are to cut 7500 jobs in France due to falling sales and profits. It is expected that approximately 5700 jobs will be through natural wastage and the remainder coming through an early retirement programme.
Opel have already said that they will end car production at Bochum in 2016 with the loss of 3300 jobs, Fiat are going to cut 1500 jobs at Tychy. In October 2012, Ford stated that they would be cutting 1400 jobs in the UK as well as closing a factory in Belgium that employed 4300 workers. PSA Peugeot Citroen announced in July 2012 that they were planning to close a factory in Aulnay and announced the loss of 8000 jobs.
Unfortunately, it’s not just the car industry that are suffering, every industry is suffering. It seems that every day, another company is calling in the administrators. It’s a real shame, and I don’t think we’ve seen the last of it.
Just when we thought that things were getting better, the bad news comes around again.
Honda are to cut 800 jobs from their Swindon plant, just under a year when they made 500 jobs available. Honda state that it is to make sure that the long term stability of its future business is safe. The jobs are to go by Spring 2013 and consultation is underway and they hope to avoid compulsory redundancies.