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LDV Vans workers take 10% pay cut | |
(about 9 hours later) | |
Workers at the LDV Vans factory in Birmingham have agreed to a 10% pay cut and three-day week in an effort to save the firm. | |
The decision was taken at a mass meeting at the Washwood Heath plant where details of a management buyout plan to save the company were unveiled. | |
Up to 850 jobs have been under threat after the production line was halted before Christmas. | |
The company said it had been hit by a downturn in worldwide van sales. | |
The meeting was attended by union leaders who have been involved in talks. | |
'Best solution' | |
Managers have said they want to restart production on 6 April if the buyout is sucessful. | |
Erik Eberhardson, buyout leader, said the plan was vital to the firm's survival. | |
Earlier this month, the government turned down a bid by the firm to secure up to £30m in a bridging loan, prompting Russian parent firm, Gaz, to warn hundreds of jobs were at risk. | Earlier this month, the government turned down a bid by the firm to secure up to £30m in a bridging loan, prompting Russian parent firm, Gaz, to warn hundreds of jobs were at risk. |
Mr Eberhardson said there were "important steps" to take in the next few days to ensure the buyout goes through. | Mr Eberhardson said there were "important steps" to take in the next few days to ensure the buyout goes through. |
"The next key action is to consult the employees about their support for it," he said. "The management team has been in discussion with the trade unions and expect these to conclude [later]." | |
Mr Eberhardson said those discussions were "progressing". | |
"I remain confident that the buyout can offer the best solution for the British economy, LDV, its employees and suppliers and the management team and I are doing everything in our power to deliver the plan," he said. | "I remain confident that the buyout can offer the best solution for the British economy, LDV, its employees and suppliers and the management team and I are doing everything in our power to deliver the plan," he said. |
A spokesman for the Unite union said the firm was in a "serious" situation. | |
"We are still looking for the government to provide short-term funding while a longer term solution is found," he said. | "We are still looking for the government to provide short-term funding while a longer term solution is found," he said. |