2:29pm Friday 6th February 2009
By Simon Carr
THE full impact of the devastating job cuts at Southampton’s Ford factory will have disastrous repercussions on the local economy, it is feared.
While employees at the plant are still reeling from the news that half the workforce is to be axed, job fears are growing among contractors and suppliers that they will feel the effects of the sweeping cuts.
Unite union regional officer Ian Woodland said: “Job cuts at Ford could have a potentially devastating effect on the supply chain and related industries.”
His concern was echoed by Councillor Royston Smith, who said the true fallout from the cuts will not be known until May when up to 500 workers are due to leave the site.
The Southampton City Council Cabinet member for economic development said: “The truth is, the ancillary and supply companies who do some or most of their business through Ford will be affected to the same extent.
“It is hard to say how many local companies rely on Ford but in the terms of jobs it will have a wider affect in the area and this will become apparent in the coming weeks and particularly in May.”
In addition to contractors and suppliers, it is feared that the cafes, shops and other businesses who rely on the workforce for custom will also feel the pinch.
Penske Logistics, Hamptons and Magna Seating are just a few of the contract companies where employees are bracing themselves for the aftermath of yesterday’s bombshell.
Hampton operations director Terry Vincent said: “At the moment it is too early to say what effect the developments at Ford will have on us but I imagine it will definitely have an impact.
We will have to see where we are when the dust settles.”
Penske worker Steven Archer said: “This is worrying news and my heart goes out to the younger workers with families. We don’t know what impact this will have on us yet but I would imagine about 20 to 30 per cent of us will probably end up losing our jobs and not getting the same pay-outs as Ford workers either.”
Penske shed more than 30 workers in a recent round of redundancies.
A Magna’s worker, who wished to remain anonymous, said: “We completely rely on Ford for our business and many of us have been worried about our jobs for some time and the Ford news has made everyone very nervous.”
The Daily Echo understands that Penske currently employs about 200 workers at the plant, Hamptons employs 100 while Magna has 50 staff based at Eastleigh.
Meanwhile, Romsey Liberal Democrat MP, Sandra Gidley, is demanding a meeting with business secretary Peter Mandelson to try to get the government to help open up credit lines so businesses can afford to buy commercial vehicles.
Sandra said: “This is tragic news for the plant, the workers and the city.
“I will be pushing for a meeting with the business secretary along with other local MPs to try to get the government to step in and give the plant the help it needs. I also want the company to reassure workers that the chassis cab plan is still coming to Southampton.”
She added that the retraining of the workers also had to be a priority.
News of the redundancies, reported yesterday by the Daily Echo, was broken to employees at a mass meeting at the plant.
As well as the 500 jobs set to go the motor giant has imposed a three-year pay freeze for the remaining workers and will be pushing back plans for the new model Transit.
The news was described by workers as the saddest day in the history of the plant.
According to Ford bosses the mass wave of redundancies at the Swaythling factory is one of a number of “cost reduction initiatives.”
Ford of Europe boss John Fleming blamed falling demand for the “decisive action” the company was taking in a bid to reduce costs and protect long-term business.
“Those companies which act quickly in taking the right decisions will be those who not only survive but who emerge strongest from this deep recession. We aim to be one of those who emerge stronger than before,” he said.
While Southampton is bearing the brunt of the job cuts about 350 salaried jobs will be shed from Ford’s other UK operations and as many as 900 throughout Europe.
Union bosses are currently in crisis talks discussing what its response will be.
Mr Woodland: “The meeting was very sombre. Obviously the news has not yet sunk in but there was an expectation that something like this may happen. It was a very depressed meeting and anxiety for the future remains.We are very disappointed that the company has reneged on the pay deal. Our members are all concerned with making ends meet and things are not looking optimistic.”
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