CAR VOTE SECURES JOB VOW; JLR staff win a 2-year reprieve on redundancy.

Byline: by NEIL HODGSON Industry Reporter

JAGUAR Land Rover car workers accepted a pay freeze and a four-day week because the alternative was too dreadful to contemplate.

The 2,000 Halewood staff and colleagues at four Midlands sites backed their unions' recommendation by almost 70% to forego a wage rise until 2010 and cut hours in a bid to save nearly pounds 70m and avoid compulsory redundancies.

A joint statement by the Unite and GMB unions said: "The choice for our members was clear - further mass redundancies or what is undoubtedly some short-term pain in order to secure the future for our members and their families.

"We did not want our members in JLR to be faced with the same fate as the thousands of others who have been dismissed in other companies."

It added: "The management agreed with our view that when this unprecedented recession ends, the retention of a skilled and loyal workforce is an integral part to the ongoing success of this business.

"Concessions on pay and benefits on which the unions have negotiated hard over many years are not made lightly, but our members acknowledge the stark reality, which is there is little point in having the best terms and conditions of employment if you have no job or no company to pay them.

"Our members should be commended for the decision they have taken today.

"This was an excellent result for the unions and great show of solidarity from our members, for which the unions are very proud."

JLR chief executive David Smith welcomed the vote.

He said: "This is an important step for us as a stand-alone business.

"It also confirms our determination as a team to steer JLR through these extraordinary and challenging times, so our business is ready to take advantage when the downturn finally ends.

"I am also pleased the company and trade unions have been able to work together so constructively when dealing with such sensitive issues."

Mr Smith added although JLR will continue to offer voluntary redundancy and sabbatical programmes, the agreement meant it was able to confirm there will be no need for compulsory redundancies over the next two years.

The JLR deal was announced the same day UK car registration figures for February showed a 21.9% fall, according to the Society of Motor Manufacturers and Traders.

Although not as bad as the 31% decline in January, it is still a worrying trend, said Eric Wall bank, Ernst & Young's UK head of automotive.

He warned: "There can be little doubt if these figures continue, we will see further distress and job losses in the sector over the coming months."

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JOBS VOW: Jaguar Land Rover chief executive David Smith