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Car manufacturer axes 1,200 jobs

Car giant Nissan is to axe 1,200 jobs at its Sunderland plant as a result of the economic slowdown which has hit the motor industry hard.

The firm’s plant in Sunderland employs around 5,000 workers and is one of the biggest employers in the North East. Shifts will be cut and 1,200 jobs axed, including 400 staff on temporary contracts.

The cuts follow increasing pleas from the motor industry for Government action to boost the availability of credit for consumers as well as firms.

Nissan sold 66,336 new cars in the UK in 2008 - only 0.14% fewer than in 2007. This was a much better performance than the national average which saw new car sales slump 11.3% in 2008. However, Nissan sales for December 2008 fell 26.68% compared with the same month in 2007. This compared with a national decline of 21.2%.

Derek Simpson, joint general secretary of the Unite union, said: “This is devastating news for the workers and their families. The announcement shows just how serious Britain’s economic difficulties are. Unite will be doing everything possible to minimise compulsory redundancies and it is absolutely crucial that these workers’ skills are not lost.”

Regional Development Agency One North East is setting up a response group to help those affected by the redundancies.

This was posted in Bdaily's Members' News section by Ruth Mitchell .