No assurances over Vauxhall jobs from Mandelson
No assurances over Vauxhall jobs from Mandelson
Friday 11th September 2009
Business secretary Lord Mandelson has admitted he cannot offer any cast-iron assurances over the future of 5,000 people employed by Vauxhall in the UK.Yesterday General Motors (GM) confirmed the sale of a 55 per cent stake in its European arm Opel, the sister company of Vauxhall, to Canadian car parts manufacturer Magna.
While the 25,000 Opel employees in Germany appear to have had their jobs guaranteed following talks between chancellor Angela Merkel and Magna, no such commitments exist in Britain.
But Lord Mandelson said he was upbeat over the future of Vauxhall plants at Luton and Ellesmere Port where the majority of the group's UK workforce is employed.
"All the workforce, throughout the entire company in Europe will face some restructuring. There's never been any question about that," he told the BBC.
"But if you're asking me whether I believe that the future of the two UK plants is assured, then I have received that assurance from Magna."
Unions have criticised the UK government for the uncertainty surrounding Vauxhall employees.
"With Magna as the new owner, we need to make sure that British plants and people are not treated disproportionately during the restructuring that will take place," said Unite joint general secretary Tony Woodley.
"We expect financial support from the UK government for Magna to be dependent on the job and plant commitments given by the company."
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