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1,160 Bridgend Ford job cuts projected in leaked report | |
(35 minutes later) | |
Ford is projecting a reduction of 1,160 workers by 2021, according to a leaked document from the company seen by BBC Wales. | Ford is projecting a reduction of 1,160 workers by 2021, according to a leaked document from the company seen by BBC Wales. |
Mass meetings are being held at Ford's Bridgend engine plant later. | Mass meetings are being held at Ford's Bridgend engine plant later. |
The projection, which would leave 600 workers at the site, is based on the assumption that it is unable to bring any new work in. | The projection, which would leave 600 workers at the site, is based on the assumption that it is unable to bring any new work in. |
Ford would not comment on the document but said it could "fully understand" concern for the longer term. | |
Ford jobs: Live updates | Ford jobs: Live updates |
A company statement said it had shared its five-year outlook with unions based on what it knew today. | |
"This shows healthy volumes to occupy the current workforce over the next two to three years," said the statement. | |
"Beyond that, identified workload is reduced and whilst such a forecast is not unusual, given the cyclical nature of our business, it is a concern, and we fully understand that. | |
The American car giant currently manufactures 655,000 engines in Bridgend but the contracts for these are coming to an end and there is only guaranteed work for 125,000 in future. | The American car giant currently manufactures 655,000 engines in Bridgend but the contracts for these are coming to an end and there is only guaranteed work for 125,000 in future. |
The leaked document says the plant is underperforming in comparison to similar sites including at Dagenham in Essex. | |
Overtime levels at Bridgend are more than double Dagenham's rates, which adds 6% to the cost of the engines produced. | Overtime levels at Bridgend are more than double Dagenham's rates, which adds 6% to the cost of the engines produced. |
It attributes this to absence, non-performance and work practices including paying staff allowances they are not entitled to and regular job rotation. | It attributes this to absence, non-performance and work practices including paying staff allowances they are not entitled to and regular job rotation. |
The document adds that finding future work for Bridgend will be subject to improvements in performance. | The document adds that finding future work for Bridgend will be subject to improvements in performance. |
A decision to cut investment in a new Dragon engine project was announced in September. | A decision to cut investment in a new Dragon engine project was announced in September. |
The Unite union called a mass meeting at Bridgend amid concerns for the long term future for the plant. | The Unite union called a mass meeting at Bridgend amid concerns for the long term future for the plant. |
Officials for the First Minister said earlier on Wednesday the union's concerns were "clearly deeply concerning" | Officials for the First Minister said earlier on Wednesday the union's concerns were "clearly deeply concerning" |
"We are actively seeking urgent assurances from Ford - both in the UK and US," said a spokesman. | "We are actively seeking urgent assurances from Ford - both in the UK and US," said a spokesman. |
"We are also speaking to the workforce through the trades unions and offering them every assistance. | "We are also speaking to the workforce through the trades unions and offering them every assistance. |
"We have worked very closely with Ford over a number of years to secure a future for the Bridgend plant, and we remain committed to supporting these vital manufacturing jobs." | "We have worked very closely with Ford over a number of years to secure a future for the Bridgend plant, and we remain committed to supporting these vital manufacturing jobs." |
Ford said it has proposed a joint working party with the Unite and GMB unions to identify future business opportunities. | |
"It goes without saying, that in order to attract new business, the Bridgend operation would need to ensure its competitiveness, and addressing some of the current concerns relating to the plant's efficiency would be high on the agenda," said the company. | |
Carwyn Jones is currently in the United States on a trade mission in Washington DC, where a £20m plane engine maintenance contract with GE Aviation for Wales has been unveiled. | Carwyn Jones is currently in the United States on a trade mission in Washington DC, where a £20m plane engine maintenance contract with GE Aviation for Wales has been unveiled. |
The Unite union has called on Ford bosses to produce a five-year plan for the Bridgend factory. | The Unite union has called on Ford bosses to produce a five-year plan for the Bridgend factory. |
It said meetings being held on Wednesday meant workers were "one step closer to strike action in defence of their jobs". | It said meetings being held on Wednesday meant workers were "one step closer to strike action in defence of their jobs". |
Unite's Welsh secretary Andy Richards accused Ford bosses of "weasel words" on plans for the future of the factory. | Unite's Welsh secretary Andy Richards accused Ford bosses of "weasel words" on plans for the future of the factory. |
He told BBC Wales: "It's our belief that Ford are going to have to confirm this morning that when the Jaguar engine finishes there in 2020 there is no future business plan for the plant. | He told BBC Wales: "It's our belief that Ford are going to have to confirm this morning that when the Jaguar engine finishes there in 2020 there is no future business plan for the plant. |
"And we believe our concerns are going to be realised - that two-thirds of the plant - that's at least 1,160 jobs will be at risk." | "And we believe our concerns are going to be realised - that two-thirds of the plant - that's at least 1,160 jobs will be at risk." |
'Stunned' | 'Stunned' |
Madeleine Moon, the MP for Bridgend, told BBC Wales she had spoken to Ford officials on Tuesday, and there had been no mention of job losses. | Madeleine Moon, the MP for Bridgend, told BBC Wales she had spoken to Ford officials on Tuesday, and there had been no mention of job losses. |
She said the latest development "has completely blindsided me". | She said the latest development "has completely blindsided me". |
Speaking on Radio Wales' Good Morning Wales, she added: "I am absolutely stunned. As far as I understood Ford were trying to find more work at Bridgend - nothing was said about job losses." | Speaking on Radio Wales' Good Morning Wales, she added: "I am absolutely stunned. As far as I understood Ford were trying to find more work at Bridgend - nothing was said about job losses." |
Labour leader Jeremy Corbyn raised the future of the plant during prime minister's questions in the House of Commons. | |
Mr Corbyn told MPs that he hoped Ford workers would "get today the assurances they need about their job security and their futures". | |
The plant currently makes 250,000 engines a year for Jaguar Land Rover and also 500,000 of Ford's own Sigma engines but it is due to stop producing both in 2018. | The plant currently makes 250,000 engines a year for Jaguar Land Rover and also 500,000 of Ford's own Sigma engines but it is due to stop producing both in 2018. |
Five months ago, Ford announced Dragon production would be cut to 125,000 engines a year and investment would reduce from £181m to £100m. | Five months ago, Ford announced Dragon production would be cut to 125,000 engines a year and investment would reduce from £181m to £100m. |
The Welsh Government promised £15m state aid on the condition 500 jobs would be secured. | The Welsh Government promised £15m state aid on the condition 500 jobs would be secured. |
Opposition AMs from Plaid Cymru and the Welsh Conservatives have called for Carwyn Jones to travel to Detroit so he can speak to Ford executives. | Opposition AMs from Plaid Cymru and the Welsh Conservatives have called for Carwyn Jones to travel to Detroit so he can speak to Ford executives. |
Plaid's economy spokesman Adam Price told BBC Radio Cymru's Post Cyntaf programme: "We've got to get confirmation one way or another with the company". | Plaid's economy spokesman Adam Price told BBC Radio Cymru's Post Cyntaf programme: "We've got to get confirmation one way or another with the company". |
His Welsh Conservative counterpart Russell George said: "The first minister must now drop any engagements he has in Washington and travel straight to Detroit to speak with Ford executives and seek assurances over the Bridgend plant's long-term future." | His Welsh Conservative counterpart Russell George said: "The first minister must now drop any engagements he has in Washington and travel straight to Detroit to speak with Ford executives and seek assurances over the Bridgend plant's long-term future." |