Vauxhall cuts 250 more jobs at Ellesmere Port plant

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Sharecast News | 09 Jan, 2018

Vauxhall has announced it will axe 250 more jobs at the plant where the Astra car is made, taking the total number of job losses there to 650.

The subsidiary of the PSA group had already announced in October that there would be 400 job losses in the Ellesmere Port facilities. These new cuts are an extension to the program announced in October.

According to Dow Jones, a spokesman for Vauxhall said that this readjustment in the workforce is “necessary so there is only one shift in the factory”, a measure they want to implement in April in order to “accelerate the recovery of plant productivity.”

In a statement, the company also revealed it had met with union representatives last week to let them know that the planned 400 job cuts would not be enough.

"Although the initial voluntary separation programme at its Ellesmere Port plant announced in October has been successful, it needs to initiate a further voluntary programme for eligible employees of a further 250 heads."

PSA's intention was to implement the reduction in headcount, which equaled one third of the workforce (1,900 people in total) since the parent company took over, via voluntary redundancies (despite requests to retain jobs).

Sales of the Astra car have declined of late and in general vehicle manufacturers were concerned about investing in production capacity due to the uncertainties brought about by Brexit.

Len McCluskey, the general secretary of the Unite trade union who represents the workers at Ellesmere Port commented on the cuts: ""This is an additional blow to a workforce that is one of the most efficient in the industry."

"PSA must provide investment guarantees on new models for Ellesmere­ Port. The government must play its part too and provide guarantees on frictionless trade after Brexit," he said.

He also asked the government to provide a safety net for UK-based car manufacturers post-Brexit.

"We ask that ministers give PSA and other manufacturers a clear signal that government will do all it needs to support this crucial sector through the Brexit process, we will not tolerate compulsory­ redundancies," he said.

Rebbeca Long-Bailey, Labour Shadow Business Secretary said on the subject: "When PSA took over Vauxhall­ the Government promised it would do the utmost to protect workers.

"Since then a third of jobs at Ellesmere­ Port have been cut.

"The Government must set out how it will support the plant and urgently provide certainty for the sector as a whole after Brexit."

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