Workers return to Honda factory after four months
Thousands of Honda employees have returned to work at the company’s Swindon plant after production was halted for four months in response to the struggling car market. The 3,400 workers have agreed to taking a pay cut until 2010 but are pleased that their jobs are finally guaranteed 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 motoring industry has been hit hardest of all and almost all car manufacturers are having difficulty staying afloat, 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 complete maintenance work that had been in the pipeline for a while. During the four months downtime the production lines were stripped down and rebuilt, and the entire plant was redecorated, where possible by employees who had the specialist skills required for the job.
But it’s not all good news. A further 1,300 Swindon employees chose to take voluntary redundancy at the time of the closure, 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 help to boost sales and give a clearer picture of the long-term future of the Swindon factory. 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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