Honda reopens Swindon factory
Thousands of Honda employees have returned to work at the company’s Swindon plant after the troubles of the car industry forced its closure four months ago. All 3,400 of the returning workers will be taking a pay cut until 2010 but are glad to be back at work with their jobs secure after spending the last four months worrying about the possibilities.
The factory was forced to close while the company decided on the best way of dealing with the problems caused by the global recession and the effect the economic downturn has had on the number of car sales and contract hire agreements. The car industry has been one of the worst affected and many car manufacturing companies are struggling to make ends meet, but the situation at Honda and how they have recovered could stand as an example to other companies who are still struggling. Tamporarily suspending production at the Swindon plant has given them opportunity to discuss and make decisions about the company’s future as well as perform long-planned maintenance work. During the four months downtime the production lines were stripped down and rebuilt, and the entire plant was redecorated, wherever possible using existing employees with the relevant specialist skills or training.
But it’s not all good news. 1,300 workers from the Swindon factory chose to opt for voluntary redundancy when the factory closed, many of whom still have not managed to secure alternative employment. And though the workers now have peace of mind that their jobs are safe, they have agreed to a pay cut of 3%, or 5% for those in management positions, for the first 10 months. The plant is only running at 50% of its normal capacity, with a projected output of 113,000 vehicles in 2009, less than half the original intended number of 228,000.
In short, it’s a small victory but the company is not out of the woods yet, Honda car leasing and sales figures will have to increase significantly over the next few months if they want to avoid any further disasters. The Swindon factory is due to start production of the new Honda Jazz model in September, which should increase sales and work towards securing the long-term future of the plant. Not to mention as the economy begins to recover buyers will be taking advantage of low car prices as across the board from Honda to Mercedes, car leasing and purchase prices are cheaper than ever.
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