GM and BMW face strike threat

Car manufacturers are under pressure to cut jobs

Vauxhall workers are to be balloted on strike action over the plan to end car production at Luton with the loss of 2,000 jobs.

The decision was made by leaders of three unions following a meeting at the General Motors European headquarters in Zurich, Switzerland.

Workers at Luton are being treated very badly

Bill Morris, TGWU general secretary

The unions failed to convince General Motors' European president Mike Burns that car production at Luton should continue.

Bill Morris, general secretary of the Transport and General Workers Union (TGWU), said they had put a strong case but the company was sticking by its original decision, blaming massive overcapacity in the car market.

'Compelling case' for closure

"The company has left us with no alternative but to seek a ballot for industrial action," Mr Morris said.

"It has taken the decision within the context of a European problem, but it means workers at Luton are being treated very badly."

Workers at Luton, and at Vauxhall's other UK plant in Ellesmere Port, Cheshire, will now be balloted on action, including strikes.

Mr Burns said industrial action would not help anyone and he called for "cool heads" in dealing with the cutback.

He said he realised the ending of car assembly at Luton was "very tough", but said the case was "compelling".

Unions in GM plants across Europe are thought to be united in their opposition to the closure of the Luton plant. A European-wide day of action is planned for 25th January.

Union leaders are also to seek a meeting in Detroit with the chief executive of General Motors worldwide Rick Wagoner.

BMW strike threat

BMW was locked in talks with union officials throughout Monday in an effort to avert industrial action at its UK plant in Cowley, after the company's latest pay and productivity deal was narrowly rejected.

The German company said it hoped to resolve the dispute at the plant, which will build the new Mini, after details of the offer were explained fully.

Union officials were due to meet shop stewards again on Tuesday for further talks.

A BMW spokesman described the proposed deal as the best in the UK motor industry for the past 12 months, giving pay rises of at least 10% over two years.

That figure is thought to include extra shift allowances.

BMW's offer

Basic 4% pay rise in the first year

3% in the second year

More flexible working conditions, including weekend shifts and performance-related pay

In return, workers would have to agree more flexibility on working schedules, including the prospect of Saturday production when necessary, to boost productivity up to the level of BMW plants in Germany.

An element of performance-related pay would also be introduced under the deal.

"We are talking to union leaders and we are optimistic of resolving this in due course," said a BMW spokesman in Munich.

BMW said reports that it was threatening to close the factory because of the dispute were "absolutely untrue".

The proposed pay deal was rejected by 51% in a vote last week.

Nissan fight

Union officials travelled to Brussels on Monday to lobby the European Commission over permission for a £40m government grant aimed at safeguarding jobs at Nissan's plant in Sunderland.

All the signs are pointing to a positive answer from the European Commission

Carlos Ghosn, Nissan president

The company is waiting for the Commission to clear the grant from the British government to produce the new Micra at the plant.

Nissan president Carlos Ghosn told a press conference at the weekend that a final decision would be made in two weeks time.

"All the signs are pointing to a positive answer from the European Commission, but we are still waiting for an formal decision regarding the grant," he added.

Concern over Nissan's commitment to the Sunderland factory, which currently makes the Micra, the Primera and Almera models, has been fuelled by the strength of the pound against the euro, making exports to Europe from the plant more expensive.

The plant employs 5,000 people directly and thousands more in the supply industry.

Its closure would lead to economic disaster for the region.

A final decision on the grant is expected on Wednesday.