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Honda's four-month break to begin Honda's four-month break to begin
(20 minutes later)
Honda is to close its UK base for four months after Friday's shifts are over.Honda is to close its UK base for four months after Friday's shifts are over.
This will affect just over 2,500 of its 3,700 employees, who will receive their full basic pay for the first two months, but around 60% thereafter.This will affect just over 2,500 of its 3,700 employees, who will receive their full basic pay for the first two months, but around 60% thereafter.
The shutdown at its Swindon base is thought to be one of the longest in Britain's recent industrial history.The shutdown at its Swindon base is thought to be one of the longest in Britain's recent industrial history.
The move is in response to the downturn in the UK car market. On Friday the Japanese car company said global third quarter net profit had dropped 89%.The move is in response to the downturn in the UK car market. On Friday the Japanese car company said global third quarter net profit had dropped 89%.
On Tuesday, Business Secretary Lord Mandelson outlined a package of government support for the UK car industry potentially worth up to £2.3bn. The last shift will end at 1820 tonight.
BBC business reporter John Moylan said many motor manufacturers have cut production in the face of collapsing demand, but none had gone as far as Honda.
Safeguarding jobsSafeguarding jobs
Honda has said there are no plans for redundancies and that it intends to "safeguard employment" for workers who want to stay at the company.Honda has said there are no plans for redundancies and that it intends to "safeguard employment" for workers who want to stay at the company.
Former Honda employee Andy McGurk on re-training and leaving the firmFormer Honda employee Andy McGurk on re-training and leaving the firm
But it is understood that more than 1,000 staff have signed up for a voluntary severance package and some have already left the business.
Dave Hodgetts, senior director at the South Marston plant, said the company was not giving any guarantees but was "giving [its] best intentions".Dave Hodgetts, senior director at the South Marston plant, said the company was not giving any guarantees but was "giving [its] best intentions".
"We can't tell what the economic situation will be within the next three months. Our point of view is that if we achieve our sales plans...which we are fairly confident we will through February, March [and] April, then we will be able to come back to production in June and that's what our firm intention is." "Our point of view is that if we achieve our sales plans...which we are fairly confident we will through February, March [and] April, then we will be able to come back to production in June and that's what our firm intention is."
He added the company would be ordering parts for next month, an indication of its commitment to start production in June. Mr Hodgetts added the company would be ordering parts for next month, an indication of its commitment to start production in June.
When staff return on 1 June, they will be making fewer vehicles as production, which was at around 240,000 vehicles a year, will resume at half that level.When staff return on 1 June, they will be making fewer vehicles as production, which was at around 240,000 vehicles a year, will resume at half that level.
Staff will be paid during the closure, but will have to work unpaid overtime when the plant reopens, a spokesman for Honda said.
Honda, which employs 3,700 people in the UK and exports the Civic to 60 countries worldwide, has also cut 3,100 temporary jobs in Japan and reduced global production by 56,000 vehicles.Honda, which employs 3,700 people in the UK and exports the Civic to 60 countries worldwide, has also cut 3,100 temporary jobs in Japan and reduced global production by 56,000 vehicles.
Not utopia 'Not utopia'
Jim D'Avila, Unite the Union's officer for the South West, added said while it was good that workers were still being paid, if things got dramatically worse "companies like Honda will not be able to pay wages". Staff will be paid during the closure, but when the plant reopens, employees will have to work unpaid overtime equal to the amount they have been paid for over the four-month period, a spokesman for Honda said.
Jim D'Avila, Unite the Union's officer for the South West, added that while it was good that workers were still being paid, if things got dramatically worse "companies like Honda will not be able to pay wages".
"[The closure] has been a long time coming...but we have been trying to minimise the financial hardship and protect as many jobs as we can.""[The closure] has been a long time coming...but we have been trying to minimise the financial hardship and protect as many jobs as we can."
Many workers will be cutting back, he said. "It's not utopia here...some will have to make financial adjustments to their budget. Some will get rid of cars, others will take a second mobile phone back or will take holidays in the UK instead of abroad."Many workers will be cutting back, he said. "It's not utopia here...some will have to make financial adjustments to their budget. Some will get rid of cars, others will take a second mobile phone back or will take holidays in the UK instead of abroad."
FROM THE TODAY PROGRAMME More from Today programmeFROM THE TODAY PROGRAMME More from Today programme
But some workers might be better off, he said. "[Some] will go off and get casual jobs and in some instances their income will be greater than if they had worked the four months."But some workers might be better off, he said. "[Some] will go off and get casual jobs and in some instances their income will be greater than if they had worked the four months."
Paul Wiseman, 33, a general associate in the engine plant, signed up for unpaid voluntary work at the Great Western Hospital to occupy him until June. He said:"Honda is trying their best and there is always a fear that we could lose our jobs but Honda have told their staff its future is in Swindon." It is understood that more than 1,000 staff have signed up for a voluntary severance package and some have already left the business.
The last shift will end at 1820 tonight. Paul Wiseman, a general associate in the engine plant, signed up for unpaid voluntary work at the Great Western Hospital.
He said:"Honda is trying their best and there is always a fear that we could lose our jobs but Honda have told their staff its future is in Swindon."
Profits plungeProfits plunge
Also on Friday, Honda said that its net profit for the three months to December plummeted 89%.Also on Friday, Honda said that its net profit for the three months to December plummeted 89%.
The company made a net profit of 20.24bn yen ($226m; £158m), far lower than the 200bn yen it made in the same period the year before, prompting the company to cut its annual forecast by more than 50%.The company made a net profit of 20.24bn yen ($226m; £158m), far lower than the 200bn yen it made in the same period the year before, prompting the company to cut its annual forecast by more than 50%.
The group now expects net profit for the year to March 2009 to be 80bn yen, less than half its earlier forecast of 185bn yen.The group now expects net profit for the year to March 2009 to be 80bn yen, less than half its earlier forecast of 185bn yen.
Bentley, Vauxhall and Jaguar Land Rover have all stopped production or cut the working week as demand for their cars fall.Bentley, Vauxhall and Jaguar Land Rover have all stopped production or cut the working week as demand for their cars fall.
On Tuesday, Business Secretary Lord Mandelson outlined a package of government support for the UK car industry potentially worth up to £2.3bn.
Do you work at the Honda factory? Or do you work in the car industry elsewhere? What do you think of this move? You can send us your experiences using the form below:Do you work at the Honda factory? Or do you work in the car industry elsewhere? What do you think of this move? You can send us your experiences using the form below:
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