All change at Vauxhall as contracts are renegotiated
Vauxhall dominated the news stories at the beginning of the week, as the Daily Mail broke the story that the carmakers workers would not be made redundant as long as take a pay cut or agree to new flexible working procedures allowing for a reduction in hours.
Parent company, General Motors have reached a deal with trade union leaders across Europe to protect jobs.
Among the flexible options for workers at the UK’s plants at Ellesmere Port and Luton include pay cuts, sabbaticals on 30 per cent salary, four-day weeks and cuts in shifts.
Hans Demant, managing director and vice president of engineering at GM Europe, told the newspaper;
“As long as these agreements are in place we will not go for forced redundancies.”
Meanwhile the Sunday Times reported that Vauxhall are also seeking to renegotiate a supply agreement with the British School of Motoring (BSM) to make the driving school pay for the cars it currently receives free of charge.
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The talks could threaten, parent company, Aviva’s attempts to sell the UK’s largest driving school group.
For several years the carmaker has supplied BSM with a 3,500-strong fleet of Corsa and Astra models, in the belief that it was a good way to market the vehicles to new drivers.
BSM received the cars for free, and after six months use they were returned to Vauxhall to be sold into the used car market. However, amid financial difficulty for the carmaker, the agreement is now considered unviable.
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