Aid for UK automotives is a 'massive disappointment' says union

Materials World magazine
,
28 Jan 2009

More support is needed for the UK automotive industry says Unite,
the UK's biggest union, in response to the Government's £2.3bln relief package for the sector.

Car producers in the UK are hanging on by a thread because of a lack of credit from the banks and a dramatic fall in demand for cars,' says Derek Simpson of Unite. Nissan has just announced a global production decrease of 35.9% in December 2008 year-on-year, with about a 46% reduction in the UK.

'Two billion pounds sounds like a lot of money but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone,' adds Tony Woodley, Joint General Secretary. This 'will come as a massive disappointment to the tens of thousands of workers employed in or dependent on this vital industry.'

The Union argues that other European Governments are plunging far more into their automotive companies.

However, Simpson welcomes the change in Government philosophy. 'Ministers must leave behind the failed free-market philosphy once and for all. The principle of Government intervention to support strategically vital industries has now been established'.

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