Ford - the minutes in full (From Daily Echo)

Ford - the minutes in full

10:11am Wednesday 16th July 2008 in Future of Ford

DRAFT
SPECIAL JOINT WORKS COMMITTEE
SOUTHAMPTON ASSEMBLY PLANT
Minutes of a special joint JWC and staff reps' meeting of the Southampton Plant.

PRESENT: M Chapman (chairperson), T Fischer, R Ardley (co-secretary), N Davis, SJ Cole, M Tomkins, E Simms, J Vanner, C Ryan (co-secretary), D Lewis, N Whitefield, A Baker, G Sharp, S Douglas, J Hamilton, R Grainger, P Dance, C Taylor, L Ellis.

IN ATTENDANCE: C Squires, M Budd (Unite regional officer)

APOLOGIES: R Krupa, N Hibberd, C Lumber (D officer), J Cook

The plant manager opened the meeting by providing an update on activity over the last week. He explained that the Manufacturing Business Office (MBO) had been in the plant and had completed the first stage of their investment analysis for the new model and the possible variants. He added that results were not yet finalised and more analysis was required, however they had made significant progress in identifying ways to reduce investment costs, especially in the bodyshop and that by July 7 they should be in a position to report back in more detail.

The plant manager explained that based on current performance the plant was heading for a $12m deficit against its budget.

The plant manager then went on to say that over the recent weeks he had held meetings with both the hourly and salaried unions to discuss various efficiency proposals. He explained that before coming up with the proposed list of ideas to reduce cost, a wide range of other more drastic actions had been considered and eventually rejected as it was recognised that they would be completely unpalatable or did not deliver sufficient savings.

The plant manger outlined a range of proposals where he believed costs could be reduced.

Following the presentation of the proposals the plant manager stated that each one would need to be investigated in more details and that some of these proposals will represent a challenge for some people. He added that he wanted to be transparent on what ideas had been discussed and rejected and that he had also asked the trade union for their ideas as well. He stated that he now needed to understand the views of the trade union so he could take the plant's position to senior management.

The convenor stated that he wished to reiterate what their national officer had stated and that they were not in a position to negotiate Blue Book terms and conditions which is the remit of NJNC or JSSUNC. He added that there is scope within the Blue Book to negotiate efficiencies but that they would not negotiate beyond that and at the same time they would want to see some assurances about the final result of the new model investment.

The Unite regional officer stated that he recognised that some of these proposals would be difficult to deliver and that he would also want to see some reassurances about the new model.

The plant manager stated that at present Ford in the US is losing huge amounts of money so the final box on the balance sheet has to show that whatever investment decision is made produces an acceptable level of investment performance. At the moment the plant's $12m overrun on costs is not acceptable. He added that although Ford of Europe is getting stronger, Southampton Plant is at a critical point in its history and that everyone has to do what they can to secure its future otherwise the Transit would be built elsewhere.

The Unite regional officer stated that it was unrealistic to expect the plant to compete with labour rates of Turkey or Eastern Europe. The plant manager stated that there are currently good people working in the plant working for 40% less than Ford rates and that he would rather have these people working as Ford employees but that simply we cannot afford to do this.

The salaried engineering representative asked if there was a savings figure that had to be reached that would secure the new model. The plant manager explained that the saving and investment figure was different depending on the volume and mix that was considered, however everyone had to make sure we delivered on as much as possible and that no one could be criticised for not seriously pursuing every opportunity to make savings to secure the new model for Southampton. He added that ultimately it was John Fleming who would have to deliver a viable business proposal to Alan Mulally and that in the current environment any proposal would be under intense scrutiny.

The plant manager stated that he recognised that both hourly and salaried trade unions would say that this isn't the forum to discuss contractual terms and that neither the company nor the trade union wanted to be in a "race to the bottom" particularly when it affected existing employees. However, there was no reason why we should not look at what we could do with contractual terms of new employees who would still be attracted to working at Southampton Plant even on lower rates than existing employees.

The Unite regional officer stated that having a two-tier workforce could create its own problems.

The HR manager stated that having tested the labour market recently they were more than confident that good quality workers would still be desperate to come and work at Ford.

The plant manager concluded the meeting by stating that by July 7 the management team planned to be in a position where they would understand the profitability of each derivative and the level of investment required. He stated that if the cost per unit was too high they would need to deliver on the difficult efficiency items that would deliver maximum savings to ensure the plant's survival.