Jaguar Land Rover in bid to save jobs

Staff at Jaguar Land Rover are set to vote on a one-year pay freeze and a four-day week, in return for no compulsory job losses for 2 years.

The deal, which is aimed at saving to £70 million in costs, has been reached between union leaders and the company.

The global slump in demand for cars led the company to slash nearly 500 jobs last month.

A spokesperson for the company said “We have had a number of constructive meetings with the unions to reach this agreement.

The unions recognise the severity of the situation and the need to take action to achieve further cost reductions while avoiding further redundancies.”

Workers at the sites based in Castle Bromwich, Coventry and Solihull in the West Midlands and Halewood, Merseyside, are set to vote in the next few days.

The company, like many others in the industry, is suffering as the economic downturn has resulted in consumers cutting back on spending on non-essential items. Many car plants have been closed or jobs slashed in response to the downturn.

In December last year, Jaguar Land Rover said it faced “unprecedented trading conditions.”

Last month, Business Secretary, Lord Mandelson, unveiled a rescue package of £2.3 billion for the UK’s car industry.

The news comes just hours after it was revealed that struggling van-maker LDV is in crisis talks with the Government with regard to urgent financial aid to prevent it from collapse.

It is understand that LDV has asked the Government for millions of pounds in loans to help secure its future and is understood to be proceeding with a management buy-out.

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