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LDV Vans workers take 10% pay cut | LDV Vans workers take 10% pay cut |
(about 3 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. | 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. | 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 since the production line was halted before Christmas. | |
The company said it had been hit by a downturn in worldwide van sales. | 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. | The meeting was attended by union leaders who have been involved in talks. |
Bonuses cancelled | |
Managers have said they want to restart production on 6 April, starting at 22 vehicles a week, if the buyout is successful. | |
I am now more confident than ever that the management buyout is the best solution for LDV Erik Eberhardson, buyout leader | |
Staff would work from 0700 GMT until 1730 GMT and managers hope production could increase to 250 vehicles a week. | |
But managers warned if this level was not achievable it would begin talks with unions about job cuts. | |
Erik Eberhardson, buyout leader, said he hoped to return salaries to normal levels eventually but this would not be during 2009. | |
All bonuses have also been cancelled. | |
Mr Eberhardson added: "This latest news is one of a number of steps being taken to improve the business plan for potential investors. | |
"I am now more confident than ever that the management buyout is the best solution for LDV, the economy, the workforce and all LDV's valued business partners." | |
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 that hundreds of jobs were at risk. | |
A spokesman for the Unite union said the firm was in a "serious" situation. | 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. |