Unions call for guarantees over future of Vauxhall’s Ellesmere Port plant as company confirms 400 jobs to go

Unions representing car-making staff at Vauxhall’s Ellesmere Port factory have called for guarantees over future investment at the plant.

 

French carmaker PSA who acquired Vauxhall from General Motors in August said it is to cut 400 jobs at Ellesmere Port by the end of the year in a bid to improve competitiveness on the back of faltering consumer confidence and growing economic uncertainty.

Britain’s largest union Unite said it was seeking high-level meetings with the UK government and Vauxhall’s parent company PSA to discuss future investment and ensure that there were no compulsory redundancies.

Unite described the Vauxhall announcement as another ‘huge loss’ to the north-west economy which would be felt throughout the supply chain.

Commenting Unite general secretary Len McCluskey said:

“This news is extremely difficult to take. To lose 400 skilled jobs at Vauxhall, albeit on a voluntary basis, is a major blow to the automotive industry and its supply chain. It is also another huge loss for the north west economy.

Quite clearly, economic concerns are having a serious impact on consumer confidence. When people feel insecure about the future they do not invest in expenditure like a new car.

Our priority now is to support our members and protect this plant. We are calling for meetings with the highest levels of the parent company PSA to ensure that there are no compulsory redundancies and that our plant continues to attract much needed investment. That includes removing the uncertainty about a new model and clarity on Ellesmere Port’s future.

But we also appeal to the government for its assistance. This industry urgently needs economic and trading certainty so that it can build for a strong future in the UK. We ask that ministers give PSA and other manufacturers a clear signal that government will do all it needs to do to support this crucial sector through the Brexit process.”

It is estimated that around 400 of the Ellesmere Port workforce are from the north east Wales area and up to a dozen Welsh firms supply the factory.

The plant is one of two Astra production factories in Europe along with Gliwice in Poland.

In a statement, Vauxhall said:

“Facing challenging European market conditions and a declining passenger car market, Vauxhall needs to adjust production volumes at its Ellesmere Port production facility to the current level of demand and to improve its performance, in order to protect its future.

Current manufacturing costs at Ellesmere Port are significantly higher than those of the benchmark plants of the PSA Group in France.

The teams are conscious of the need to accelerate the recovery of plant productivity in order to meet the challenges ahead, while continuously improving the already high level of quality achieved today.”

The four millionth Vauxhall Astra rolled off the production line at the Ellesmere Port factory in September.
The Astra is the sixth most popular new car for UK motorists this year, with more than 34,000 registered between January and July.

Vauxhall will move Ellesmere Port towards a single shift operation during 2018, with a voluntary separation programme for 400 eligible employees, around a quarter of the plant’s staff.