Back to work for Honda staff at Swindon
Thousands of employees at Honda’s Swindon factory have been allowed back to work after the plant was forced to close for four months due to financial troubles. 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 spending the last four months worrying about the possibilities.
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 allowed them time to make important decisions about the future of the business 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, where possible by employees who had the specialist skills required for the job.
But not everything is good news. A further 1,300 Swindon employees chose to take voluntary redundancy when the factory closed, many of whom are still out of work. 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 duration of the next 10 months. The reopened factory is currently only running at 50% capacity, with a predicted total production of 113,000 vehicles in 2009, less than half the original intended number of 228,000.
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 increase sales and work towards securing the long-term future of the plant. 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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