Back to work for Honda staff at Swindon
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Thousands of workers at Honda’s Swindon factory have returned to work after the troubles of the car industry forced its closure four months ago. All 3,400 of the returning workers will be taking a pay cut until 2010 but are glad to be back at work with their jobs secure after the uncertainty of the last four months.
The factory was forced to close while the company decided on the best way of dealing with the problems caused by the global recession and the effect the economic downturn has had on the number of car sales and contract hire agreements. The car industry has been one of the worst affected and many car manufacturing companies are struggling to make ends meet, but the situation at Honda and how they have recovered could stand as an example to other companies who are still struggling. Their decision to temporarily close the Swindon factory has given them opportunity to discuss and make decisions about the company’s future as well as perform long-planned maintenance work. The production lines were stripped and rebuilt during the months the factory was closed, and the entire plant was redecorated, wherever possible using existing employees with the relevant specialist skills or training.
But it’s not all good news. 1,300 workers from the Swindon factory chose to opt for voluntary redundancy when the factory closed, many of whom still have not managed to secure alternative employment. And though the workers now have peace of mind that their jobs are safe, their pay has been cut by 3%, or 5% in management roles, for the first 10 months. The reopened factory is currently only running at 50% capacity, with a projected output of 113,000 vehicles in 2009, less than half of the original 228,000 estimate.
In short, it’s a small victory but the company is not out of the woods yet, Honda car leasing and sales figures will have to increase significantly over the next few months if they want to avoid any further disasters. The new Honda Jazz model, due to start production at Swindon in September, should help to boost sales and give a clearer picture of the long-term future of the Swindon factory. Not to mention as the economy begins to recover buyers will be taking advantage of low car prices as across the board from Honda to Mercedes, car leasing and purchase prices are cheaper than ever.
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