French car giant Peugeot-Citroen is to end production at one of its main UK factories with the loss of 2,300 jobs. Posted on 04/18/2006 2:22:28 PM PDT by M. Espinola
French car giant Peugeot-Citroen is to end production at one of its main UK factories with the loss of 2,300 jobs.
The factory at Ryton in Coventry will stop making the Peugeot 206 model next year.
The decision was given to union officials who had been summoned to a meeting with company bosses. Union sources said they had been fearing bad news but expressed shock at the scale of the announcement.
Derek Simpson, general secretary of Amicus, said: "This is disastrous news for British manufacturing. It is inconceivable that workers in France would be laid off on this scale.
"Weak UK labour laws are allowing British workers to be sacrificed at the expense of a flexible labour market."
The union said there would be an "enormous" impact on the local economy, estimating that every job at Ryton sustained another three in service firms.
Thousands of other jobs depend on the Ryton factory and the decision is yet another blow to the car industry in the West Midlands following last year's collapse of MG Rover.
Jean Martin Folz, chief executive officer of PSA Peugeot Citroen, said the plan followed a detailed study during the first quarter of 2006 by the group of its industrial cost effectiveness which had "clearly confirmed the weaknesses for the Ryton plant".
The company blamed high production and logistical costs which it said meant the group was unable to justify the investment needed for the production of future vehicles.
It said: "These internal factors, together with reduced demand and intense competition in Europe, have led the group to come to this difficult conclusion, having already reduced production at a number of other European sites at the end of 2005.
"The group's proposal is that production at Ryton is brought to a close in two phases; in the first instance the factory, which today operates two shifts, moves to a single shift in July 2006, with production not continuing beyond mid 2007. For the group, 2,300 jobs are affected.
"Having presented the proposal to its staff at the plant, the group will now enter into consultation with the trade unions.
"The group remains committed to its social responsibilities and will work closely with trade unions and Government throughout the coming months to provide a comprehensive support package for its staff and to help as many as possible to find alternative employment."
But seriously, last I heard they were talking about coming back to the U.S.?!
It is amazing that there are no local MP's willing to go on hunger strike to save these jobs.
New Jersey employees of Lucent Technologies you will be next. But Patricia will come out smelling like a rose again!
The plant is in Britain.
OK, here is how to save these jobs. Hire French Students to protest the closing of this factory and Chirac will pull some strings at Peugot to keep the factory open. Bam, problem solved.
So, if I reading this correctly, the French management has to cut jobs and, since it is about impossible to fire a French worker, they are making the cuts in the UK.
Tough blow for the UK workers but you have to think that is the risk you take when you work for a company that faces oppressive labor laws back at home, which don't protect your particular job. If I were in business I wouldn't want anything to do with France.
Lucent is being sold to Alcatel.
I guess the Frogs got tired of the Brits installing their steering wheels on the left hand side. ;)
I would imagine the underground economy in France is huge.
"You keep using that word... I do not think it means what you think it means."
Just don't buy the plant back for auto manufacturing or you will have to hire them all back.
The UK should respond by placing a tarrif on Lemons, and promote their land rover lines.
No doubt! Now, if we could just figure a way to sneak our illegal immigrant workers over to France...
When you touch it does it roll up in a little ball?
Give them free one-way airline tickets? It's probably cheaper than giving them a free welfare check.
10-4 on the rehires.
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