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14/10/2009
The future of Vauxhall's two UK plants looks more certain, after the company's buyers reached agreement with the union that represents the bulk of its workforce.
According to Unite, there will be no compulsory redundancies at either the Luton or Ellesmere Port plants, and the latter - in Merseyside - is set to produce the next Astra from 2016.
Unite says that it reached agreement with Magna - the Canadian car parts firm that looks set to take over the European arm of General Motors, which owns Vauxhall - after weeks of negotiations. In return for undertakings by Magna, the workforce will contribute efficiency savings and accept a two-year pay freeze.
The union's joint general secretary, Derek Simpson, thanked the prime minister and the business secretary, Lord Mandelson, for their role in securing the deal.
"Their support has ensured we can preserve and maintain the 25,000 jobs in manufacturing and services and the 403 components companies which depend on Vauxhall, and would have been at serious risk had agreement not been reached," he said.
Tony Woodley, also joint general secretary, added: "This agreement removes the uncertainty surrounding our plants and our people's jobs.
"It gives both plants job security and a future through to 2013, providing a good basis for a long-term future beyond that."
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