LONDON, May 17: General Motors will build the next generation of its Astra compact in Britain, rather than in Germany, after workers at its plant in Ellesmere Port, northwest England, agreed to a new labour deal overnight.
‘It’s been confirmed this morning that they (the workers) have been balloted, that they’re willing to adopt tough but flexible labour practices,’ Britain’s Business Secretary Vince Cable told BBC radio on Thursday.
A source close to negotiations said votes were still being counted but that it was clear a deal, which will be a coup for the British government but a blow for Germany, was ‘highly likely’ to have been agreed.
The deal will secure the jobs of 2,100 staff at the Vauxhall plant and provide a huge boost to the British government, which is grappling with a recession and weak opinion poll ratings. Vauxhall is the UK arm of Opel, GM’s European unit.
The decision also means hundreds of new jobs will be created at the plant as it moves from two production shifts to three.
There had been speculation earlier this year that the plant could miss out on future investment by owners General Motors, threatening jobs.
Reuters reported on Wednesday that a deal was close but was dependent on workers at the plant near Liverpool voting in favour of changes to working conditions.
Opel is now expected to halt production of the Astra, its most important model, at its main plant in Ruesselsheim, Germany, and making the car only in Ellesmere Port and in Poland’s Gliwice plant from 2015.
Securing increased production by foreign-owned carmakers based in Britain has been one of the few bright spots in a drive by politicians to boost manufacturing and rebalance the economy away from financial services.
‘The company felt … We in the UK were totally committed to this industry, there’s a very good relationship between the company, the unions and the government, we’re getting fully behind it, the labour force are flexible in their approach to working practices,’ said Cable.
‘These are big long term things, when exchange rates go up and down.’
There had been speculation earlier this year that the Ellesmere Port plant would be closed by owners General Motors, threatening heavy job losses.
(AGENCIES)
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