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Ford set to cut up to 850 staff Ford set to cut up to 850 staff
(20 minutes later)
Up to 850 UK workers at the car giant Ford are to be offered voluntary redundancy packages.Up to 850 UK workers at the car giant Ford are to be offered voluntary redundancy packages.
Between 400-500 of the posts are to go at the Transit plant in Southampton by May under the cost cutting plans.Between 400-500 of the posts are to go at the Transit plant in Southampton by May under the cost cutting plans.
Bosses will also renegotiate a recent pay deal struck at the south coast site and have postponed a decision on the future Transit production at the plant.Bosses will also renegotiate a recent pay deal struck at the south coast site and have postponed a decision on the future Transit production at the plant.
Sandra Gidley MP said it was "tragic news" and claimed the government had been "slow to act". Union representatives said they still expected the pay increase to be honoured.
Sandra Gidley, Lib Dem MP for Bassett and Swaythling, said the announcement was "tragic news" and claimed the government had been "slow to act".
She added: "This is tragic news for the plant, the workers and the city.She added: "This is tragic news for the plant, the workers and the city.
"That is bad enough, but Ford are creating extra uncertainty by renegotiating the recent pay deal. As demand across the industry continues to fall, we are facing some immediate and major challenges John Fleming, Ford of Europe chairman and CEO"That is bad enough, but Ford are creating extra uncertainty by renegotiating the recent pay deal. As demand across the industry continues to fall, we are facing some immediate and major challenges John Fleming, Ford of Europe chairman and CEO
"I have been consistently raising concerns for some months, but the government have been slow to act.""I have been consistently raising concerns for some months, but the government have been slow to act."
She said she was seeking a meeting with Business Secretary Peter Mandelson over the situation. She said she is seeking a meeting with Business Secretary Peter Mandleson over the situation.
Ford bosses blamed the "unprecedented" economic conditions over its decision.Ford bosses blamed the "unprecedented" economic conditions over its decision.
It said it would review a 5.25% pay deal at the Southampton site agreed late last year. It said it would review a 5.25% pay deal agreed late last year.
In response, union representatives said they still expected the pay increase to be honoured.
John Fleming, Ford of Europe chairman and CEO, said: "As demand across the industry continues to fall, we are facing some immediate and major challenges.John Fleming, Ford of Europe chairman and CEO, said: "As demand across the industry continues to fall, we are facing some immediate and major challenges.
"Those companies which act quickly in taking the right decisions will be those who not only survive but who emerge strongest from this deep recession.""Those companies which act quickly in taking the right decisions will be those who not only survive but who emerge strongest from this deep recession."
The announcement comes as new car registrations fell by 30% in January, the Society of Motor Manufacturers and Traders said on Thursday.