Page last updated at 11:18 GMT, Tuesday, 10 November 2009

Further job cuts sought at Honda

Honda's Swindon factory
The Swindon factory produces the latest model Honda Jazz

Honda has said it plans to seek further job cuts at its Swindon factory, months after workers accepted a pay reduction to safeguard their future.

Union leaders at the factory have said they are angry and disappointed over the company's decision.

Honda said due to projected sales it needed to cut 500 posts but stressed no compulsory redundancies would be made.

More than 1,300 posts have already been axed and the plant was closed for two months due to poor trading conditions.

"Good faith"

Jim D'Avila, of the union Unite, said the firm's latest offer - which was made directly to the 3,400-strong workforce - was "a serious setback for Honda's recovery".

He said workers were suspicious that the money saved by pay cuts, which they believed had done away with the need for job cuts, was being used to fund redundancies.

"We've made an agreement with the company in good faith.

"We will be seeking to have the pay cut reinstated because the company has no longer honoured the intention of our negotiations, which was to safeguard 500 jobs."

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