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Honda's production line restarts | Honda's production line restarts |
(about 2 hours later) | |
Production at Honda's car factory in Swindon has restarted after a four-month shutdown but at about half its full capacity. | |
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 people took voluntary redundancy, reducing the workforce to about 3,400. | |
Staff got full pay for two months of the shutdown and 60% for the remainder. | Staff got full pay for two months of the shutdown and 60% for the remainder. |
David Hodgetts, director of manufacturing at Honda UK, said tough decisions had been taken to try to ensure the plant's long term future. | |
"We'll only be working about 50% of our full capacity. | |
"We have tried our best to protect jobs. There's been no compulsory redundancies at all at Honda, and that's the biggest objective we had throughout this period. | "We have tried our best to protect jobs. There's been no compulsory redundancies at all at Honda, and that's the biggest objective we had throughout this period. |
Honda factory worker: "It is great to be back" | Honda factory worker: "It is great to be back" |
"And hopefully that's what we're going to try and maintain through that action we've taken," he said. | "And hopefully that's what we're going to try and maintain through that action we've taken," he said. |
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. |
"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." | |
'Stuck to their word' | |
Mr Hodgetts added: "I think for most people it's the fact they've got a job, secure employment and that's what we've been trying to work for over the past few months. | |
"It's really important to Honda that we keep car manufacturing in the UK as we want to." | |
Andy Conlon has worked at the Honda plant in Swindon for the past 13 years. | |
"They've stuck to their word, there's been no (compulsory) redundancies so I'm very happy. | |
I think most people will be happy to put down the DIY and start building cars Andy Conlon, Honda worker | |
"The uncertainty was difficult to deal with but good information came out so I was confident of what they were telling us and I think they've done what they could for us. | |
"I think most people will be happy to put down the DIY and start building cars," he said. | |
Another worker who returned to the factory on Monday said: "When we left in January, we wondered what was going on, but now we've gone through that period, hopefully we can push on. Let's hope we can get through this." | |
The plant will turn to producing the Honda Jazz from September. | The plant will turn to producing the Honda Jazz from September. |
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. |
Last November that projected figure was reduced to 175,000 when it was decided production would stop in February and March this year. | Last November that projected 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. |