19/04/2006

Unions consider strike action over Peugeot plant closure

Unions are considering taking strike action over the announcement of the closure of the Peugeot-Citroen plant in the West Midlands.

Around 2,300 jobs are expected to be lost with the closure of the plant at Ryton, near Coventry, and it is feared that a further 1,500 jobs could be lost in the supply chain and local economy.

Peugeot-Citroen said that the plant – which makes Peugeot's 206 model - was no longer competitive and had high logistical costs. Director of Communications John Goodman said that the company would not change its decision to close the Ryton plant, stressing that each car produced at the plant cost around 415 euros (£288) more than cars produced in the firm's Eastern European factories.

Work at the Ryton plant has now been suspended while workers attend meetings.

Des Quinn of the TGWU said that such a situation would never have occurred in France because of the stronger employment laws. He said: “We intend to take this fight not only to Peugeot, but to the centre of government to change employment legislation, to ensure that not only Ryton has a long-term future, but the rest of manufacturing in the UK.”

The Prime Minister expressed sadness in the House of Commons about the jobs losses but said that they were “inevitable” because of global pressures, not the British position, which he said remained strong.

Production at the Ryton plant will now halt in mid-2007. The announcement is another jobs blow for the West Midlands, following the collapse of MG Rover and the closure of Jaguar's Brown's Lane site in Coventry, with the jobs being shifted to the firm's Castle Bromwich site near Birmingham.

(KMcA)

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