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.”