Workers at Nissan fear for their jobs
Dec 11 2008 by William Green, The Journal
THE Government last night insisted it was doing all it can to help Britain’s car industry amid fears of job losses at Nissan and its suppliers in the North East.
Business Minister Ian Pearson told The Journal that industry-wide production cutbacks and job losses were due to “unprecedented times” in the global automotive sector sparked by a dramatic slump in demand for cars.
But he said a package of assistance, including £65m for training, was in place to help firms and unemployed workers – although the Tories warned immediate help to car firms secure access to vital credit lines was needed.
The Government was also fighting for around £7bn in European cash to support the UK car sector, said the minister, though he did not specifically discuss Nissan.
Mr Pearson added the Government was carefully considering calls from industry chiefs for tax breaks and access to short-term loans after he and Business Secretary Lord Mandelson met them last month.
His comments came after Nissan workers privately expressed fears of further production cutbacks and job losses at the company’s plant in Sunderland and among suppliers.
The company sent home all 3,500 production workers on Tuesday and told them not to return until Monday, and revealed lines will be shut down for six more days before the Christmas break.
Nissan said all staff would remain on full pay during the production cutbacks and there were no immediate plans for redundancies, despite sales falling by 40% in recent months.
It declined to comment on the latest speculation about job losses, but a spokeswoman said it would take “any appropriate action” in response to highly volatile conditions. Mr Pearson said: “The Government is doing everything it can to help those in this sector who become unemployed to get back into work as quickly as possible.
“All employers are obliged to notify the Government of redundancies affecting more than 20 people at least 30 days in advance so we can take swift action to help affected workers find new jobs and training.”
Alan Clarke, One North East chief executive, said: “ We are seeking an early meeting with key supply chain firms to understand the pressures and concerns they are experiencing and how best these can be tackled.”
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