Industrial action threatened as Ford axes jobs

Ford also announced that it wanted to “re-evaluate” this year’s pay deal of 5.2%, saying that its business situation had worsened “significantly” since it was drawn up last October.

The company said in a statement: “Such a serious step would not normally be contemplated but in the unprecedented circumstances the priority is to ensure a sustainable Ford Motor Company.”

Unite attacked the announcement as a “betrayal” and warned that cutting workers’ pay to meet redundancy payments could lead to industrial action.

Joint general secretary Tony Woodley said: “These proposals are completely unacceptable and a betrayal of Ford’s loyal UK workforce. Ford are asking the workers to take a cut in pay to preserve jobs, but workers are asking themselves if their pay is being cut to pay for friends and colleagues to be thrown on to the dole.”

The union warned that unless Ford reconsidered the plans, it will have “no option” but to ballot members on industrial action.

“Ford has today reached a new low in corporate integrity. While their executives pay themselves handsomely and their European profits alone totalled 1.06 billion dollars in 2007/2008, they are using the challenging global circumstances to cut the jobs and pay of the workers who helped make them these massive profits.”

“They must respect this pay deal. If they fail to do so, then we will have no other choice but to consult our members on how they wish to take to defend their jobs and pay,” said Mr Woodley.

Unions negotiated a three-year pay deal from 2008 across Ford UK, which was accepted overwhelmingly by the workforce.

Unite questioned why Ford was declining to apply for US Congress financial assistance on the basis that it had the liquidity to ride out the economic crisis, while it was seeking to cut jobs and pay in the UK.

John Fleming, chief executive of Ford of Europe, said: “As demand across the industry continues to fall, we are facing some immediate and major challenges which require us to take decisive action to reduce all our costs, and to do so in ways which will best protect our business for the long term and ensure that we are well-positioned to be among the winners when recovery does come.

“Those companies which act quickly in taking the right decisions will be those who not only survive but who emerge strongest from this deep recession. We aim to be one of those who emerge stronger than before.”

Ford said declining customer demand for commercial vehicles has had a “significant” impact on its Southampton plant, which currently operates on less than four shifts a week.

“Continued non-production days with employees on basic pay are not affordable in the absence of a significant improvement in customer demand.

“To address this, the company will open a voluntary separation programme for salaried and hourly Southampton employees to bring manned capacity into line with customer demand, with between 400 and 500 employees leaving by May 2009.”

GMB officer Justin Bowden said: “Ford of Europe made a profit in excess of £1bn (€1.14bn) in 2008. The pay offer reflects last year’s rate of inflation and the massive contribution to that profit by the UK Ford workers.

“Yet again Ford is going back on its agreement with its workforce and this time it is on pay. They tabled a final offer at the end of last year and in good faith it has been overwhelmingly accepted.

Gary Alexander, who has worked at the Southampton factory for 20 years, said outside the gates: “It’s doom and gloom here at the moment and I think this factory’s days are numbered. They went back on their word about the pay offer and they said there would be no more job losses.

“They said the redundancies will be voluntary but they will not get that many.”

Another worker, who did not want to give his name, added: “We’re just gutted and I feel sorry for the younger ones. It’s decimated Southampton – it’s horrible but that’s Ford for you.”