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Honda's production line restarts | Honda's production line restarts |
(about 4 hours later) | |
The production line at Honda's car factory in Swindon has restarted after a four-month shutdown. | |
Thousands of workers have agreed to a 3% pay cut for the next 10 months, with managers taking a 5% drop after sales were hit by the economic downturn. | Thousands of workers have agreed to a 3% pay cut for the next 10 months, with managers taking a 5% drop after sales were hit by the economic downturn. |
Some 1,300 factory staff took voluntary redundancy, reducing the number of workers to 3,400. | Some 1,300 factory staff took voluntary redundancy, reducing the number of workers to 3,400. |
Staff received full pay for the first two months of the shutdown and around 60% for the last two months. | Staff received full pay for the first two months of the shutdown and around 60% for the last two months. |
Dr Peter Wells, a motor industry expert from Cardiff Business School, said the resumption of production was good for workers. | Dr Peter Wells, a motor industry expert from Cardiff Business School, said the resumption of production was good for workers. |
Fewer cars | Fewer cars |
"It's a very good message in some respects for the nature of British worker relations with management in the car industry," he told BBC Radio Five Live. | "It's a very good message in some respects for the nature of British worker relations with management in the car industry," he told BBC Radio Five Live. |
"Both sides have been patient and both sides have tried to see this problem through. | "Both sides have been patient and both sides have tried to see this problem through. |
"On the other hand, Honda is not going back into full production. | "On the other hand, Honda is not going back into full production. |
"They're going to start up the lines, but, in this year, they'll probably only produce half of what they really anticipated producing." | "They're going to start up the lines, but, in this year, they'll probably only produce half of what they really anticipated producing." |
The plant will turn to producing the popular Honda Jazz supermini from September, despite numbers of cars being produced have gone down. | The plant will turn to producing the popular Honda Jazz supermini from September, despite numbers of cars being produced have gone down. |
The firm had hoped to produce 228,000 vehicles at Swindon this year. | The firm had hoped to produce 228,000 vehicles at Swindon this year. |
But last November that figure was reduced to 175,000 when it was decided production would stop in February and March this year. | But last November that figure was reduced to 175,000 when it was decided production would stop in February and March this year. |
In mid-January, Honda said the shutdown would last through April and May as well, and the 2009 production figure has now been set at just under 113,000. | In mid-January, Honda said the shutdown would last through April and May as well, and the 2009 production figure has now been set at just under 113,000. |
With production halted, Honda spruced up the Swindon plant, stripping and rebuilding assembly lines and redecorating throughout. | With production halted, Honda spruced up the Swindon plant, stripping and rebuilding assembly lines and redecorating throughout. |