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1,160 Bridgend Ford job cuts projected in leaked report Ford Bridgend could lose 1,160 jobs in worse case scenario
(about 3 hours later)
Ford is projecting a reduction of 1,160 workers at its Bridgend base by 2021, according to a leaked document from the company seen by BBC Wales. Unions have said they would fight a potential 1,160 job losses at Ford's engine plant in Bridgend.
Mass meetings are being held at the engine plant on Wednesday afternoon. Unite said it would "use all its might" while the GMB said the outlook, confirmed at a meeting, was a "real kick in the teeth".
The projection, which would leave 600 workers at the site, is based on the assumption that it is unable to bring any new work in. Unless new business comes in, the south Wales site could be left in a worse case scenario with only 600 workers by 2021.
Prime Minister Theresa May told MPs the UK government had had "dialogue" with Ford about how it could help. The prime minister said a "dialogue" would continue with Ford about help.
Ford would not comment on the document but said it could "fully understand" concern for the longer term. On Wednesday, Ford shared its five-year outlook with unions in the wake of reductions in planned investment in its new Dragon engine.
Ford jobs: Live updates It said there were "healthy volumes" of work over the next two to three years.
"Beyond that, identified workload is reduced and whilst such a forecast is not unusual, given the cyclical nature of our business, it is a concern and we fully understand that," said the company.
Analysis: Ford Bridgend loses out in global raceAnalysis: Ford Bridgend loses out in global race
Speaking at Prime Minister's Question Time, Mrs May told Parliament: "Ford is an important investor here. It has been established here for over 100 years. We now account for around a third of Ford's global engine production and Bridgend continues to be an important part of that. As it happened: Ford Bridgend jobs
Speaking at Prime Minister's Question Time, Theresa May told Parliament: "Ford is an important investor here. It has been established here for over 100 years. We now account for around a third of Ford's global engine production and Bridgend continues to be an important part of that.
"We have had dialogue with Ford. We will continue to have a regular dialogue with Ford about the ways government can help to make sure this success continues.""We have had dialogue with Ford. We will continue to have a regular dialogue with Ford about the ways government can help to make sure this success continues."
First Minister Carwyn Jones has told BBC Wales that reports of more than 1,000 job losses at Ford's Bridgend engine plant were "a worst case scenario". Economy Secretary Ken Skates said he had spoken to Ford's vice president and told assembly members there was a need for Ford to "better communicate" the long-term plans for the plant to the workforce.
Mr Jones said he had been in "constant contact" with Ford Europe and the Welsh Government would be working with the company to bring in new investment for the future.
He said: "There is work to be done but I am confident that we can strengthen Ford Bridgend's position."
Economy Secretary Ken Skates told assembly members there was a need for Ford to "better communicate" the long-term plans for the plant to the workforce.
"We stand ready to do all we can to support the plant in becoming more productive and crucially in securing new products for the plant from 2021 onwards," he said."We stand ready to do all we can to support the plant in becoming more productive and crucially in securing new products for the plant from 2021 onwards," he said.
But he added: "I do believe in order to avert the crisis, we need to have a more meaningful engagement from the UK government.But he added: "I do believe in order to avert the crisis, we need to have a more meaningful engagement from the UK government.
"What's good for Nissan is surely good for Ford.""What's good for Nissan is surely good for Ford."
A company statement said it had shared its five-year outlook with unions based on what it knew now.
"This shows healthy volumes to occupy the current workforce over the next two to three years," said the statement.
"Beyond that, identified workload is reduced and whilst such a forecast is not unusual, given the cyclical nature of our business, it is a concern and we fully understand that."
OvertimeOvertime
The American car giant currently manufactures 655,000 engines in Bridgend but the contracts for these are coming to an end and there is only guaranteed work for 125,000 in future.The American car giant currently manufactures 655,000 engines in Bridgend but the contracts for these are coming to an end and there is only guaranteed work for 125,000 in future.
The leaked document said the plant is underperforming in comparison to similar sites, including at Dagenham in Essex. A leaked company document, seen by BBC Wales, said the plant was underperforming in comparison to similar sites, including at Dagenham in Essex.
Overtime levels at Bridgend are more than double Dagenham's rates, which adds 6% to the cost of the engines produced.Overtime levels at Bridgend are more than double Dagenham's rates, which adds 6% to the cost of the engines produced.
It attributes this to absence, non-performance and work practices including paying staff allowances they are not entitled to and regular job rotation.It attributes this to absence, non-performance and work practices including paying staff allowances they are not entitled to and regular job rotation.
The document adds that finding future work for Bridgend will be subject to improvements in performance.The document adds that finding future work for Bridgend will be subject to improvements in performance.
A decision to cut investment in a new Dragon engine project was announced in September.A decision to cut investment in a new Dragon engine project was announced in September.
The Unite union called a mass meeting at Bridgend amid concerns for the long-term future for the plant.The Unite union called a mass meeting at Bridgend amid concerns for the long-term future for the plant.
The first minister is currently in the United States on a trade mission in Washington DC, where a £20m plane engine maintenance contract with GE Aviation for Wales has been unveiled.
Ford said it has proposed a joint working party with the Unite and GMB unions to identify future business opportunities.Ford said it has proposed a joint working party with the Unite and GMB unions to identify future business opportunities.
"It goes without saying, that in order to attract new business, the Bridgend operation would need to ensure its competitiveness, and addressing some of the current concerns relating to the plant's efficiency would be high on the agenda," said the company. "It goes without saying, that in order to attract new business, the Bridgend operation would need to ensure its competitiveness, and addressing some of the current concerns relating to the plant's efficiency would be high on the agenda," the company said.
'Stunned''Stunned'
Unite said meetings on Wednesday meant workers were "one step closer to strike action in defence of their jobs". Unite's Len McCluskey said he wanted guarantees to secure future production at the plant and for the company to look at introducing new lines.
Earlier, the union's Welsh secretary Andy Richards accused Ford bosses of "weasel words" on plans for the future of the factory. "This loyal workforce and their union have been kept in the dark over recent months," he said.
He told BBC Wales: "It's our belief that Ford are going to have to confirm this morning that when the Jaguar engine finishes there in 2020 there is no future business plan for the plant. "But the focus now has to be saving these jobs. We will not allow Ford to walk away from its responsibilities. Ford must give this plant a chance and work with Unite to secure a better future."
"And we believe our concerns are going to be realised - that two-thirds of the plant - that's at least 1,160 jobs will be at risk." Jeff Beck, GMB organiser, said: "The nightmare for our members at Bridgend has unfortunately come true.
Bridgend MP Madeleine Moon met Ford officials on Tuesday and said: "I am absolutely stunned. As far as I understood Ford were trying to find more work at Bridgend - nothing was said about job losses." "This is a real kick in the teeth for our hard-working members at the Ford plant - as well as their families and the community as a whole."
Bridgend MP Madeleine Moon met Ford officials on Tuesday and said: "I am absolutely stunned. As far as I understood Ford were trying to find more work at Bridgend - nothing was said about job losses."
Labour leader Jeremy Corbyn raised the future of the plant during prime minister's questions in the House of Commons.Labour leader Jeremy Corbyn raised the future of the plant during prime minister's questions in the House of Commons.
Mr Corbyn told MPs that he hoped Ford workers would "get today the assurances they need about their job security and their futures".
Five months ago, Ford announced Dragon production would be cut to 125,000 engines a year and investment would reduce from £181m to £100m.Five months ago, Ford announced Dragon production would be cut to 125,000 engines a year and investment would reduce from £181m to £100m.
The Welsh Government promised £15m state aid on the condition 500 jobs would be secured.The Welsh Government promised £15m state aid on the condition 500 jobs would be secured.
Opposition AMs from Plaid Cymru and the Welsh Conservatives have called for Carwyn Jones to travel to Detroit so he can speak to Ford executives. Opposition AMs from Plaid Cymru and the Welsh Conservatives have called for First Minister Carwyn Jones, who is in the United States, to travel to Detroit so he can speak to Ford executives.
Plaid's economy spokesman Adam Price called for a summit on the automotive industry and told AMs that if losing two thirds of employment at Wales' third biggest manufacturing plant was on the agenda it would be an "economic crisis every bit as serious" as the problems recently affecting steel. Plaid's economy spokesman Adam Price called for a summit on the automotive industry and told AMs if losing two thirds of employment at Wales' third biggest manufacturing plant was on the agenda it would be an "economic crisis every bit as serious" as the problems recently affecting steel.
His Welsh Conservative counterpart Russell George said: "The first minister must now drop any engagements he has in Washington and travel straight to Detroit to speak with Ford executives and seek assurances over the Bridgend plant's long-term future."His Welsh Conservative counterpart Russell George said: "The first minister must now drop any engagements he has in Washington and travel straight to Detroit to speak with Ford executives and seek assurances over the Bridgend plant's long-term future."