UP TO 150 jobs could go at Vauxhall’s plant in Ellesmere Port as the firm cuts back on production to cope with the economic downturn.
The company says it’s offering voluntary redundancy packages to some workers at the site, which employs about 2,100 people and makes the market-leading Vauxhall Astra.
Vauxhall wants to trim production to ensure it does not build too many surplus vehicles because car sales have still not picked up.
Up to 300 jobs could be affected across the UK, half at Ellesmere Port and half in Luton.
The move is opposed by unions, which said the company should hold on to skilled workers so it is ready to grow again when the economy recovers.
It is understood the latest move is not connected to plans by parent company General Motors to restructure its European operations, with plant closures still an option.
In a statement, the company said: “It is common practice to balance supply with demand to avoid building up stocks and, as a consequence of the continued economic downturn, a number of employees will be offered voluntary separation packages at our Ellesmere Port plant.”
John Fetherstone, trade union convenor at Ellesmere Port, said Vauxhall should retain its staff so it is ready to capitalise when the market improves.
He said: “We say the company should retain this skilled workforce ready to take advantage when times get better – which they will.”
GM is expected to announce plans to restructure its European operation soon as it battles to return it to profitability.
Last year GM Europe lost £446m before taxes.
Business Secretary Vince Cable urged General Motors bosses to make a long-term commitment to the UK after holding a summit in New York over the closure threat facing the Ellesmere Port plant.
He met GM’s chief executive, Dan Akerson, and Steve Girsky, the group’s vice-chairman, in the US on Wednesday.
After travelling to New York to meet General Motors’s chief executive and chairman, Mr Cable – who will be at this week’s Geneva Motor Show – said: “We have set out a very positive case to them for remaining, and indeed expanding their operations in the UK. I’m positive, but it is their decision and they haven’t yet made it.
Ellesmere Port and Neston MP Andrew Miller said: “As far as I understand these are redundancies left over from the last round and are all voluntary, they do not relate to GM’s review of their business. This was expected. The big issue is what happens at the end of the quarter.”
He added: “We’ve got to hold our nerve and do everything we can.”
