Vauxhall Ellesmere plant now work four day weeks 1
Following a lack of demand in the UK and the European car market, Vauxhall have been forced to reduce the number of working days at their Ellesmere plant to just four. Although the number of days has been cut, the number of working hours is still expected to stand at 38 per week.
General Motors are attempting to make major savings throughout their operations in Europe. There have been serious calls regarding the closure of the factory altogether. The UK Government, in particular Vince Cable, played a significant role in helping the factory to stay open.
He met with General Motors executives face to face on more than one occasion. The Unite Trade Union also played a major role in keeping the factory open.
Currently the General Motors owned company are suffering major losses in Europe for the last 12 years. There are currently 2,000 workers working at the Cheshire plant. Losses have reached the billions mark and are not acceptable by anyone’s standards.
In September the plant closed for one week, with workers still being paid. There was not enough demand to justify so many cars being produced. The state of the Euro Zone crisis is adding more unwanted pressure to Vauxhall.
The recent announcement of a four day week means that the factory will not only reduce the amount of unnecessary vehicles being produced, but will also allow energy costs from the factory to be saved. An official announcement read “Vauxhall has concluded a new operating agreement at its Ellesmere Port plant which condenses a five-day working week into four days with subsequent savings in utility costs,”
Four day weeks at the Vauxhall Ellesmere plant will allow more time for the installation of equipment. The factory was chosen as the place for the new generation Vauxhall Astra to be built. This project in particular helped secure the future of the plant, helping its future to be secured.
One worker was reported to have stated that the cut down in days is a cause for concern. The market has died down a great deal in Europe for new cars. A peak in 2007 saw 16.8 million cars delivered but that number has fallen to 13.6 million with mass car producers feeling the pain.
What else will happen to the Vauxhall Ellesmere plant in the upcoming months?