Honda has announced it will cut 800 jobs at its Swindon plant.
Honda is to cut 800 jobs at its Swindon factory after a slump in demand across Europe - that's around a quarter of its workforce of 3500.
The news was broken to staff as they arrived this morning.
Our Wiltshire reporter Robert Murphy reports:
– Spokesperson for the Department for Business, Innovation and SkillsThis will be a bitter blow to the workforce and the local area and we will be working with local partners to minimise the impact of the job losses. Times are tough in the European market but the automotive industry remains a major success story for the UK. Over the last two years global manufacturers including Nissan, JLR and BMW have invested 6 billion in the UK safeguarding and creating new jobs.”
Swindon Borough Council leader Roderick Bluh has issued a statement reacting to the job losses at Honda.
– Cllr Roderick BluhHonda is one of our biggest and most valued employers in Swindon so we are naturally disappointed the company has had to take this difficult decision. This announcement will affect many people and families throughout Swindon and we will be working with Honda, and our partners, to provide as much support as possible to those employees who are affected by these job losses.
Honda Europe's executive vice president, Ken Keir, has told The West Country Tonight that the proposed job cuts in Swindon are a long term solution to the lack of demand in the European market. He said they don't expect any further cuts and that the company has a 'long term future' in Swindon.
The union Unite says it will fight any plans for compulsory redundancies by Honda bosses. Staff were told this morning that nearly a quarter of the workforce at its Swindon factory are to go this year.
– Tony Murphy, Unite national officer"Unite will oppose any compulsory job losses. We expect Honda to negotiate meaningfully with the union in order to mitigate the impact of these cuts. Unite will be meeting with our local union reps in the coming days to discuss the company's proposals."
The Unite Union says Honda's decision to axe nearly a quarter of its Swindon workforce is a disaster for manufacturing in the UK and for the local economy. Union leaders were told of the job loses yesterday and are locked in talks with bosses today.
– Tony Murphy, Unite national officerThis is a hammer blow to UK manufacturing and to Swindon where Honda is a major employer. The reality is that over 1,000 jobs are going at Honda - it’s a disaster for manufacturing in the UK and for the local economy . It's a tragedy for our members and their families. There's no doubt these cuts will have a significant knock-on impact on the supply chain, and on local shops and services .That is why we intend to save as many jobs as possible.
– Cllr Roderick Bluh, Leader of Swindon Borough CouncilHonda is one of our biggest and most valued employers in Swindon so we are naturally disappointed the company has had to take this difficult decision.
This announcement will affect many people and families throughout Swindon and we will be working with Honda, and our partners, to provide as much support as possible to those employees who are affected by these job losses."
Honda is to cut 800 jobs at its Swindon factory after a slump in demand across Europe, the company said today. The factory employs 3,500 people, if the plans go ahead nearly a quarter of people could be out of work.
Honda said individual discussions will be held with workers at the Swindon factory following the announcement, while union officials have been briefed about the plans.
– Ken Keir, executive vice president of Honda Motor EuropeSustained conditions of low demand in European markets make it necessary to re-align Honda's business structure.
As such, Honda of the UK Manufacturing (HUM) will enter into formal consultation with its associates to consider these changes and the proposal that it will reduce the workforce by 800 associates by spring 2013."