- Joined
- May 27, 2001
- Messages
- 20,896
- Reaction score
- 530
Nissan staff face 75% cut in pay in bid to ease crisis
Dec 19 2008 by Sam Wood, The Journal
NISSAN workers could have their pay slashed by 75% for three months next year, it was claimed last night.
All production workers at the site were sent home yesterday for the second time in a fortnight. It meant staff started the annual Christmas break two days earlier than planned.
Last night a worker at the plant told The Journal that a company DVD shown to employees outlined two options:
Working on full pay but reduced production until March, then doing extra hours when work increases
All production to stop until March, with workers paid for one week in four.
Nissan bosses last night said the first option was already available under existing contracts and described the second as pure speculation.
The insider, who did not want to be named, also told The Journal the DVD said the company was in crisis.
He said: “There is a lot of confusion at the moment about what these options mean and a lot of worry. We will just have to see what happens.”
Another Nissan worker, who also wanted to remain anonymous, revealed workers feared mass redundancies when they were called to the briefing yesterday.
He said: “It has been a very worrying time for everyone. We have heard all kinds of rumours about what will happen, some think there will be redundancies, others think we could be on reduced wages or working part time.”
Earlier this month all 3,500 workers were sent home as production was suspended. Sales have slumped by 40% this year as the global downturn has hit the car market hard.
On Wednesday, Business Minister Ian Pearson said action would be taken to protect jobs at the Washington plant if it was feared it was close to collapse.
A spokesman for the company said workers were expected back at the plant as normal after the festive season break.
He said: “In line with other manufacturers, Sunderland plant has brought forward its annual Christmas shutdown.
“Although no production was planned between Friday, December 19, and Tuesday, December 23, previously staff had been told to attend work to carry out a range of training and improvement activities.
“Now production staff will begin their annual Christmas break from today, returning to work as normal on Monday January 5.”
Dave Telford, North East regional officer for Unite union, represents workers at the Nissan plant. He called for meetings with company bosses when production resumes.
He said: “This temporary measure has not been agreed with the union, but we recognise that the current economic climate requires a response.
“We will be seeking a meeting with Nissan in the new year.”
A spokeswoman from the Department for Business, Enterprise and Regulatory Reform said: “Business Secretary Lord Mandelson has already said that Government does not have an open chequebook to bail out ailing companies.
“The Government is doing all it can to help businesses overcome the current financial and economic challenges. The Secretary of State has confirmed that Government is talking to industry bodies about the current economic difficulties the sector faces.
“We recognise that Nissan remains committed to the UK – in June the company announced a £55m investment supported by £6.2m from the Government for a new model to be produced at Sunderland from 2010, so safeguarding its future viability, and we continue to work with Nissan to attract further investment to Sunderland.”
THE Conservatives yesterday added to growing calls to help Nissan.
Labour MPs have already urged ministers to step in and help the car industry, which has been hit by a sales slump and sparked fears of mass job cuts.
And shadow business secretary Alan Duncan yesterday said car companies were suffering as the recession began to bite – although he warned against unconditional bailouts.
“These unique circumstances call for unique measures. The Government needs to be ready to step in and help sectors to allow them to survive the slump.
“What companies such as Jaguar Land Rover and Nissan need is credit help, not unconditional bailouts, to prevent those companies which are viable in the long-term going to the wall in the short-term.”
Mr Duncan, also Tory Shadow Minister for Tyneside, said: “This means Government guarantees to underwrite loans made by banks on commercial terms to businesses.
“That is exactly why we have proposed a National Loans Guarantee Scheme, to help get credit flowing through our economy.
“If we lose skills and manufacturers because of Labour’s mismanagement of the economy, we will find that business is lost abroad forever.”
Senior Tory MP Peter Luff, chairman of the powerful Commons business and enterprise committee, said: “They are going to have to do something for the car industry.
“If we stand back when America and other nations are doing something to help their industries, we run the risk of significantly reducing the size of our car industry.
“I suspect that a lot of them will want loan guarantees to see them through these difficulties.”
Tory Treasury spokesman Mark Hoban, his party’s shadow minister for Wearside, said getting credit flowing again was vital to help the car industry.
“For Nissan employees, this is difficult news coming so close to Christmas and we all have a great deal of sympathy,” he added.
THE Government last night warned firms it did not have an open chequebook.
Business Secretary Lord Mandelson conceded car firms had seen a sharp drop in demand, which was creating a lot of difficulties, especially for Jaguar Land Rover.
He confirmed talks had been held with the Indian-owned car firm over the possibility of State assistance, saying he was taking stock of all the issues before making any decisions.
Figures from the Society of Motor Manufacturers and Traders (SMMT) showed the number of cars built in factories in the UK last month was 97,604, down by 33% on last November, while commercial vehicle production slumped by 50%.
Almost 1.4m cars have been built so far this year, a 2.7% fall on the same period last year, the figures showed.
The SMMT said the rapid slowdown in output was caused by falls in domestic and export demand for vehicles, prompting officials to step up calls for urgent support to restore demand and loosen credit restrictions. Paul Everitt, chief executive of the SMMT, said: "The UK motor industry is facing unprecedented challenges and urgent action is now required.
"The sector has seen falls in demand, extended plant closures and the first signs of redundancies in the supply chain.
"Without swift action and the ability to access credit and finance, significant damage will be done to the nation’s industrial capability, leaving the UK poorly equipped to take advantage of any global growth when it returns."
Jaguar Land Rover chief executive David Smith said it had received no confirmation from Government of any financial assistance.
He said: "We have, however, made it clear that we fully support the Society of Motor Manufacturers and Traders’ call for a range of support measures for the car industry – suppliers, manufacturers and dealers – as has been forthcoming in other countries.
"The SMMT have made it clear that the situation in the UK is a national emergency requiring urgent action.
"We believe that Jaguar Land Rover plays a critical role in the car industry in the UK, supporting up to 75,000 jobs in our own business as well as our suppliers and dealers, and spending around £3bn a year on research and development and purchasing in the UK."
Asked about the possibility of support for Jaguar, a spokesman for the Prime Minister said: "We recognise that a lot of people are employed in the motor industry and in the businesses that support it."
Lord Mandelson said he would form his own view on whether the financial pressures were short-term or whether longer-term issues needed greater financial and other restructuring of companies.
He said: "I, and the Government as a whole, do not have an open chequebook for companies coming along and needing help. If there’s appropriate assistance we can offer, then we will consider it.
"But people should not assume that we are, as a Government, in the business of bailing out every company that has a problem during this coming very tough period.
"The Government will apply some very tough tests to anyone in the private sector coming along and asking for particular assistance. I’m not closing the door in anyone’s faces, but nor am I inviting people to form a queue outside that door, as if they can just come along and expect help from the Government."
THE Bush administration was last night considering an orderly bankruptcy as a way of dealing with America’s beleaguered car industry.
A multi-million pound bailout stalled in the US Congress earlier this month and two of the nation’s Big Three car-makers – General Motors (GM) and Chrysler – have said they will run out of cash within weeks. Ford is in only a slightly healthier position.
President George Bush said he was working out a way to avoid having to dump his successor Barack Obama with a major catastrophe on his first day in office.
Mr Bush and the White House are working out a plan to avoid the devastating blow to the US economy, with millions of job losses, that experts have predicted would come with the failure of any one of the Detroit-based firms.
Yesterday White House Press secretary Dana Perino said: "There’s an orderly way to do bankruptcies that provides for more of a soft landing. I think that’s what we would be talking about.
"If you thought that our economy today could handle the collapse of the American auto industry, then you might come to the conclusion that doing nothing was an option. We’re going to do something."
Mr Bush, asked about a rescue plan for the car-makers during an appearance before a private group, said he had not yet decided what he would do.
But he said the idea of bankruptcies organised by the federal government was a possible way to go.
"Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring," he said during a speech and question-and-answer session at the American Enterprise Institute, a conservative Washington think-tank.
"These aren’t normal circumstances. That’s the problem."
Mr Bush and the White House were speaking after Chrysler announced it was closing all its North American manufacturing plants for at least a month over the holidays.
GM has also been closing plants and both have said they might not have enough money to pay their bills in a matter of weeks. GM yesterday had to dismiss a report that it and Chrysler have restarted merger talks.
Prices of GM and Ford stocks were down substantially after the White House comments.
Mr Bush said the car industry was obviously very fragile and added he was worried about what an out-and-out collapse without Washington involvement would do to the psychology of the markets.
Yesterday it was disclosed that Bush and Obama will meet again for lunch at the White House, along with former US presidents Jimmy Carter, Bill Clinton and George HW Bush, on January 7.
"These men share experiences that no one else can imagine. It will be fabulous to have them all here together," Ms Perino said.
Dec 19 2008 by Sam Wood, The Journal
NISSAN workers could have their pay slashed by 75% for three months next year, it was claimed last night.
All production workers at the site were sent home yesterday for the second time in a fortnight. It meant staff started the annual Christmas break two days earlier than planned.
Last night a worker at the plant told The Journal that a company DVD shown to employees outlined two options:
Working on full pay but reduced production until March, then doing extra hours when work increases
All production to stop until March, with workers paid for one week in four.
Nissan bosses last night said the first option was already available under existing contracts and described the second as pure speculation.
The insider, who did not want to be named, also told The Journal the DVD said the company was in crisis.
He said: “There is a lot of confusion at the moment about what these options mean and a lot of worry. We will just have to see what happens.”
Another Nissan worker, who also wanted to remain anonymous, revealed workers feared mass redundancies when they were called to the briefing yesterday.
He said: “It has been a very worrying time for everyone. We have heard all kinds of rumours about what will happen, some think there will be redundancies, others think we could be on reduced wages or working part time.”
Earlier this month all 3,500 workers were sent home as production was suspended. Sales have slumped by 40% this year as the global downturn has hit the car market hard.
On Wednesday, Business Minister Ian Pearson said action would be taken to protect jobs at the Washington plant if it was feared it was close to collapse.
A spokesman for the company said workers were expected back at the plant as normal after the festive season break.
He said: “In line with other manufacturers, Sunderland plant has brought forward its annual Christmas shutdown.
“Although no production was planned between Friday, December 19, and Tuesday, December 23, previously staff had been told to attend work to carry out a range of training and improvement activities.
“Now production staff will begin their annual Christmas break from today, returning to work as normal on Monday January 5.”
Dave Telford, North East regional officer for Unite union, represents workers at the Nissan plant. He called for meetings with company bosses when production resumes.
He said: “This temporary measure has not been agreed with the union, but we recognise that the current economic climate requires a response.
“We will be seeking a meeting with Nissan in the new year.”
A spokeswoman from the Department for Business, Enterprise and Regulatory Reform said: “Business Secretary Lord Mandelson has already said that Government does not have an open chequebook to bail out ailing companies.
“The Government is doing all it can to help businesses overcome the current financial and economic challenges. The Secretary of State has confirmed that Government is talking to industry bodies about the current economic difficulties the sector faces.
“We recognise that Nissan remains committed to the UK – in June the company announced a £55m investment supported by £6.2m from the Government for a new model to be produced at Sunderland from 2010, so safeguarding its future viability, and we continue to work with Nissan to attract further investment to Sunderland.”
THE Conservatives yesterday added to growing calls to help Nissan.
Labour MPs have already urged ministers to step in and help the car industry, which has been hit by a sales slump and sparked fears of mass job cuts.
And shadow business secretary Alan Duncan yesterday said car companies were suffering as the recession began to bite – although he warned against unconditional bailouts.
“These unique circumstances call for unique measures. The Government needs to be ready to step in and help sectors to allow them to survive the slump.
“What companies such as Jaguar Land Rover and Nissan need is credit help, not unconditional bailouts, to prevent those companies which are viable in the long-term going to the wall in the short-term.”
Mr Duncan, also Tory Shadow Minister for Tyneside, said: “This means Government guarantees to underwrite loans made by banks on commercial terms to businesses.
“That is exactly why we have proposed a National Loans Guarantee Scheme, to help get credit flowing through our economy.
“If we lose skills and manufacturers because of Labour’s mismanagement of the economy, we will find that business is lost abroad forever.”
Senior Tory MP Peter Luff, chairman of the powerful Commons business and enterprise committee, said: “They are going to have to do something for the car industry.
“If we stand back when America and other nations are doing something to help their industries, we run the risk of significantly reducing the size of our car industry.
“I suspect that a lot of them will want loan guarantees to see them through these difficulties.”
Tory Treasury spokesman Mark Hoban, his party’s shadow minister for Wearside, said getting credit flowing again was vital to help the car industry.
“For Nissan employees, this is difficult news coming so close to Christmas and we all have a great deal of sympathy,” he added.
THE Government last night warned firms it did not have an open chequebook.
Business Secretary Lord Mandelson conceded car firms had seen a sharp drop in demand, which was creating a lot of difficulties, especially for Jaguar Land Rover.
He confirmed talks had been held with the Indian-owned car firm over the possibility of State assistance, saying he was taking stock of all the issues before making any decisions.
Figures from the Society of Motor Manufacturers and Traders (SMMT) showed the number of cars built in factories in the UK last month was 97,604, down by 33% on last November, while commercial vehicle production slumped by 50%.
Almost 1.4m cars have been built so far this year, a 2.7% fall on the same period last year, the figures showed.
The SMMT said the rapid slowdown in output was caused by falls in domestic and export demand for vehicles, prompting officials to step up calls for urgent support to restore demand and loosen credit restrictions. Paul Everitt, chief executive of the SMMT, said: "The UK motor industry is facing unprecedented challenges and urgent action is now required.
"The sector has seen falls in demand, extended plant closures and the first signs of redundancies in the supply chain.
"Without swift action and the ability to access credit and finance, significant damage will be done to the nation’s industrial capability, leaving the UK poorly equipped to take advantage of any global growth when it returns."
Jaguar Land Rover chief executive David Smith said it had received no confirmation from Government of any financial assistance.
He said: "We have, however, made it clear that we fully support the Society of Motor Manufacturers and Traders’ call for a range of support measures for the car industry – suppliers, manufacturers and dealers – as has been forthcoming in other countries.
"The SMMT have made it clear that the situation in the UK is a national emergency requiring urgent action.
"We believe that Jaguar Land Rover plays a critical role in the car industry in the UK, supporting up to 75,000 jobs in our own business as well as our suppliers and dealers, and spending around £3bn a year on research and development and purchasing in the UK."
Asked about the possibility of support for Jaguar, a spokesman for the Prime Minister said: "We recognise that a lot of people are employed in the motor industry and in the businesses that support it."
Lord Mandelson said he would form his own view on whether the financial pressures were short-term or whether longer-term issues needed greater financial and other restructuring of companies.
He said: "I, and the Government as a whole, do not have an open chequebook for companies coming along and needing help. If there’s appropriate assistance we can offer, then we will consider it.
"But people should not assume that we are, as a Government, in the business of bailing out every company that has a problem during this coming very tough period.
"The Government will apply some very tough tests to anyone in the private sector coming along and asking for particular assistance. I’m not closing the door in anyone’s faces, but nor am I inviting people to form a queue outside that door, as if they can just come along and expect help from the Government."
THE Bush administration was last night considering an orderly bankruptcy as a way of dealing with America’s beleaguered car industry.
A multi-million pound bailout stalled in the US Congress earlier this month and two of the nation’s Big Three car-makers – General Motors (GM) and Chrysler – have said they will run out of cash within weeks. Ford is in only a slightly healthier position.
President George Bush said he was working out a way to avoid having to dump his successor Barack Obama with a major catastrophe on his first day in office.
Mr Bush and the White House are working out a plan to avoid the devastating blow to the US economy, with millions of job losses, that experts have predicted would come with the failure of any one of the Detroit-based firms.
Yesterday White House Press secretary Dana Perino said: "There’s an orderly way to do bankruptcies that provides for more of a soft landing. I think that’s what we would be talking about.
"If you thought that our economy today could handle the collapse of the American auto industry, then you might come to the conclusion that doing nothing was an option. We’re going to do something."
Mr Bush, asked about a rescue plan for the car-makers during an appearance before a private group, said he had not yet decided what he would do.
But he said the idea of bankruptcies organised by the federal government was a possible way to go.
"Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring," he said during a speech and question-and-answer session at the American Enterprise Institute, a conservative Washington think-tank.
"These aren’t normal circumstances. That’s the problem."
Mr Bush and the White House were speaking after Chrysler announced it was closing all its North American manufacturing plants for at least a month over the holidays.
GM has also been closing plants and both have said they might not have enough money to pay their bills in a matter of weeks. GM yesterday had to dismiss a report that it and Chrysler have restarted merger talks.
Prices of GM and Ford stocks were down substantially after the White House comments.
Mr Bush said the car industry was obviously very fragile and added he was worried about what an out-and-out collapse without Washington involvement would do to the psychology of the markets.
Yesterday it was disclosed that Bush and Obama will meet again for lunch at the White House, along with former US presidents Jimmy Carter, Bill Clinton and George HW Bush, on January 7.
"These men share experiences that no one else can imagine. It will be fabulous to have them all here together," Ms Perino said.
