Nissan warn that job losses may still be necessary

Mar 13 2009 by William Green, The Journal

NISSAN last night warned compulsory job losses could still be necessary, despite being overwhelmed with applications for voluntary redundancy.

In January, the car maker announced plans to axe 1,200 jobs in Washington after suffering a sales drop of more than 25%.

So many people applied for voluntary severance that the company has now frozen new applications.

But a spokesman last night said compulsory redundancies were still being planned.

A company statement said: “Nissan Sunderland has temporarily suspended applications from staff for the voluntary redundancy package agreed by the Joint Consultation Committee at the beginning of February.

“The suspension will allow a review of existing applications to take place.

“In order to achieve the voluntary redundancy, a significant relocation of staff is needed and the transfer of skills within the plant needs to be fully assessed.

“The response to the voluntary redundancy package from employees has been positive and it remains the committee’s aim to manage the right-sizing activity at Sunderland on a voluntary basis.”

The statement concluded: “The market continues to be very volatile and therefore sales forecasts are changing daily so it is still prudent to continue planning for compulsory redundancy should this be necessary within the 90-day consultation window.”

TUC regional secretary Kevin Rowan last night urged Nissan to consider workers willing to volunteer for redundancy first.

His calls came as the region’s minister Nick Brown urged the Government to get fully behind developing a North East electric car industry.

Mr Brown said Nissan was investigating where to locate a European plant to build electric car batteries and promised to fight to bring it to the North East.

He also revealed that Business Secretary Lord Mandelson is due to visit the region to discuss the potential to develop a green car industry, which could secure the future of thousands of jobs.

Mr Brown’s comments come after The Journal last month revealed that the Government and Nissan were in discussions over building low-emission cars in the region.

“There is a real chance that we could obtain for our future, a major investment programme, a strategic change programme, around the electric car run by one of the big international players in the car industry. And of course, I am talking about Nissan,” he said.

Speaking at a seminar looking at the region’s future, Mr Brown said the car company was looking at a building a plant to build the batteries for electric vehicles ahead of a Europe-wide launch.

He said other European countries were interested, but stressed there was a “very strong case” for the factory to be built in Washington.