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5:02pm Wednesday 16th July 2008
FORD'S giant Southampton plant could lose the contract to build the next generation of Transit because its costs are millions of pounds too high, the Daily Echo can reveal.
Company minutes leaked to this newspaper show bosses warning that the factory was at a "critical point in its history"
and that the new Transit "could be built elsewhere".
The revelations come just days after the Daily Echo revealed that the plant, which employs 1,243, could lose the work overseas and see the workforce cut back.
In a bid to cut costs, which are more than £6m over budget, the minutes reveal bosses have even considered slashing wages for new staff.
Click here to read the minutes in full.
But despite the suggested pay cut, management claim in the documents that people would "still be desperate to come and work at Ford".
They also add that a further range of unspecified "drastic actions" had been considered to save money.
But, the minutes say, these were rejected because they were "completely unpalatable" and would not make "sufficient savings".
The details on the state of the plant were revealed in the minutes of a meeting of its Special Joint Works Committee last month.
In them plant manager Martin Chapman says it is important for the company to be transparent about all plans discussed even if they are later rejected.
The minutes don't give any more detail on what these plans were or what the final proposals are.
When the Daily Echo contacted Ford, a spokesman said the company would not make any comment.
He said: "These minutes concern a private and professional meeting and we would not be responding to a media inquiry about them.
"This closed meeting was held prior to the Employee Bulletin that was put out - that is the newest and most up to date information for the workers."
According to the minutes Mr Chapman says the final plans will need more investigation and that "some of these proposals will represent a challenge for some people".
The three-page draft of minutes came to light after the Daily Echo exclusively published a leaked memo that cast doubt over the future of the plant and its workers.
Many employees told the Daily Echo they had been told production could be cut from 80,000 to 35,000 vehicles a year, with the additional work going to the Kocaeli plant in Turkey.
These concerns were fuelled by news that a new Ford plant at Craiova in Romania would start making Transit Connects in 2009 - a year before work is to begin on the new model Transit.
Workers fear this plant could be used to free up space and resources at the Turkish plant, which currently produces Transits and Transit Connects.
After the Daily Echo article appeared Southampton Test MP Alan Whitehead raised the issue in the House of Commons and demanded top-level Government talks while local council bosses vowed to do all they can to encourage Ford to stay in Swaythling.
In the leaked minutes Mr Chapman talks to 20 other people in attendance - committee members and staff representatives - about cutting the starting salary for new recruits.
He said: "There was no reason why we should not look at what we could do with contractual terms of new employees who would still be attracted to working at Southampton plant even on lower rates than existing employees."
The minutes also record the h u m a n resources manager Rob Ardley said: "Good quality workers would still be desperate to come and work at Ford."
Unite union regional officer Mike Budd told the committee that creating a two-tier would create problems.
He added that it was unrealistic to expect the plant to compete with labour rates of other Ford plants in Turkey or eastern Europe.
The minutes go on to state that Mr Chapman said the plant's current performance is unacceptable and that if it does not improve it may not get the contract for the new Transit in 2010.
When approached by the Echo Mr Budd refused to comment on the issues brought up in the minutes as he said they were the records of a private meeting.
Union chiefs are meeting with Ford bosses for top-level talks later this week and will be reporting back to shop stewards on Monday.
Ciaran, says...
9:34am Wed 16 Jul 08
Anon wrote:There hasn't been a strike at the Transit plant for almost 20 years...
i bet those that went on strike for more pay are not so clever now.
Anon, says...
9:41am Wed 16 Jul 08
Ciaran wrote:plenty of threats and demands for up to 15% pay rises thou
Anon wrote: i bet those that went on strike for more pay are not so clever now.There hasn't been a strike at the Transit plant for almost 20 years...
Anon, says...
9:45am Wed 16 Jul 08
Ciaran wrote:Shouldnt be one ever.
Anon wrote: i bet those that went on strike for more pay are not so clever now.There hasn't been a strike at the Transit plant for almost 20 years...
wasp, says...
10:08am Wed 16 Jul 08
Anon wrote:Which makes your 1st post look rather stupid !
Ciaran wrote:plenty of threats and demands for up to 15% pay rises thouAnon wrote: i bet those that went on strike for more pay are not so clever now.There hasn't been a strike at the Transit plant for almost 20 years...
Anon, says...
10:15am Wed 16 Jul 08
wasp wrote:it was the 10% pay rise that they settled for that has priced them out thou. the turks we do if for less in a brand new purpose built factory.
Anon wrote:Which makes your 1st post look rather stupid !Ciaran wrote:plenty of threats and demands for up to 15% pay rises thouAnon wrote: i bet those that went on strike for more pay are not so clever now.There hasn't been a strike at the Transit plant for almost 20 years...
Osama Bin Laden, A Cave far far away says...
10:38am Wed 16 Jul 08
hulla, baloo says...
11:26am Wed 16 Jul 08
Fred, Here says...
11:32am Wed 16 Jul 08
hulla wrote:Because its due to this government that manufacturing is being driven out and businesses find working in the UK not as profitable as less taxed countries such as Turkey.
Why is the issue being raised in Parliament, and with Council bosses? It is a major company trimming costs and streamlining its operation to be more profitable. Given the option, I would think most manufacturers would consider, or be doing the same.
southy, redbridge says...
11:38am Wed 16 Jul 08
southy, redbridge says...
11:41am Wed 16 Jul 08
hulla, baloo says...
11:45am Wed 16 Jul 08
Fred wrote:Not just the Government.
hulla wrote: Why is the issue being raised in Parliament, and with Council bosses? It is a major company trimming costs and streamlining its operation to be more profitable. Given the option, I would think most manufacturers would consider, or be doing the same.Because its due to this government that manufacturing is being driven out and businesses find working in the UK not as profitable as less taxed countries such as Turkey. As has been mentioned before there are plenty of other companies who have gone the same way.
southy, redbridge says...
12:11pm Wed 16 Jul 08
Steve, outers says...
12:48pm Wed 16 Jul 08
Anon wrote:Although Southampton is a productive and profitable plant, it is true wage costs in Eastern Europe are lower.
i bet those that went on strike for more pay are not so clever now.
Bambi, says...
1:01pm Wed 16 Jul 08
Osama Bin Laden wrote:Illegal suicide bombers, you say? Is there any other kind?
Don't worry guys I have seen how single mums and illegal suicide bombers live, its a good life with lots of money, so Don't feel ashamed about signing on
mischiefmaker, says...
1:05pm Wed 16 Jul 08
Paramjit Bahia, Southampton says...
1:07pm Wed 16 Jul 08
southy wrote:You are right the root cause of many problems can be traced back to the Thatcher era. But although she has gone her policies have been adopted by New Labour, so the mess we are in.
fred said \"Because its due to this government that manufacturing is being driven out and businesses find working in the UK not as profitable as less taxed countries such as Turkey. As has been mentioned before there are plenty of other companies who have gone the same way\" its poor mangerment not the goverment or work skills,and if your going to blame a goverment blame the 1979 to 1989 goverment thats the goverment that screwed up the system.
southy, redbridge says...
1:16pm Wed 16 Jul 08
Lowe and Behold, St Marys hotseat says...
1:38pm Wed 16 Jul 08
Paramjit Bahia wrote:Do you always have to write a story?
southy wrote: fred said \"Because its due to this government that manufacturing is being driven out and businesses find working in the UK not as profitable as less taxed countries such as Turkey. As has been mentioned before there are plenty of other companies who have gone the same way\" its poor mangerment not the goverment or work skills,and if your going to blame a goverment blame the 1979 to 1989 goverment thats the goverment that screwed up the system.You are right the root cause of many problems can be traced back to the Thatcher era. But although she has gone her policies have been adopted by New Labour, so the mess we are in. Other problem is Ford itself. Like most American giants it is running into financial problems all over, has even lost major share of American market. This only leads me to think that lack of vision and arrogance of management that killed major British car companies is now catching up with America's Ford and General Motors etc. Other problem is the EU into which we were hoodwinked by another Tory Ted Heath, and also another Conservative folly that has been hugged by New Labour. Yes it can be argued that Turkey is out side the EU, but then isn't Brown the Bean supporting their request for EU membership? Cowboy in the White House has also been suggesting that it will be good for the EU as well. Could it be that Ford is planning ahead with the knowledge that our elected representative are more likely to implement the agenda of big corporations then than interests of ordinary people, so Turkey will eventually be in the EU? Must go. Have to show some solidarity with Council workers on picket lines. That is if they are still there!
lol, says...
1:40pm Wed 16 Jul 08
Bambi wrote:Dead ones?
Osama Bin Laden wrote: Don't worry guys I have seen how single mums and illegal suicide bombers live, its a good life with lots of money, so Don't feel ashamed about signing onIllegal suicide bombers, you say? Is there any other kind?
Fact Man, here says...
1:47pm Wed 16 Jul 08
southy wrote:Cyprus did not belong to Greece when invaded by Turkey.
Anom said "it was the 10% pay rise that they settled for that has priced them out thou. the turks we do if for less in a brand new purpose built factory." the turks will not be building transits for europe,they are not a member of the EU,and would be subject to the anti flooding laws whitch will push the price up,pricing them selfs out of the van market in europe,turkey will not be allowed to join the EU till it pulls out all of their troops and people it relocated there,and hand back the land it took from greece in 1974 (cyprus),turkey is just a smoke screen,for some thing else.
interested party, Soton says...
1:49pm Wed 16 Jul 08
interested party, Soton says...
1:50pm Wed 16 Jul 08
southy, redbridge says...
2:10pm Wed 16 Jul 08
Fact Man wrote:it did it was a self governed island belonging to greece or esle greece would not of got involed
southy wrote:Cyprus did not belong to Greece when invaded by Turkey.
Anom said \\\"it was the 10% pay rise that they settled for that has priced them out thou. the turks we do if for less in a brand new purpose built factory.\\\" the turks will not be building transits for europe,they are not a member of the EU,and would be subject to the anti flooding laws whitch will push the price up,pricing them selfs out of the van market in europe,turkey will not be allowed to join the EU till it pulls out all of their troops and people it relocated there,and hand back the land it took from greece in 1974 (cyprus),turkey is just a smoke screen,for some thing else.
southy, redbridge says...
2:19pm Wed 16 Jul 08
dave, Millbrook says...
3:39pm Wed 16 Jul 08
Spiv, Swaythling says...
5:18pm Wed 16 Jul 08
Denzil, Hampshire says...
5:37pm Wed 16 Jul 08
ex Bacardi staff, southampton says...
5:57pm Wed 16 Jul 08
jim, Southampton says...
7:05pm Wed 16 Jul 08
southampton resident, says...
7:23pm Wed 16 Jul 08
Fred, says...
9:32pm Wed 16 Jul 08
Ciaran wrote:And the plant only really started making transits in 1972 when production was moved from Langley. Change happens.
Anon wrote: i bet those that went on strike for more pay are not so clever now.There hasn't been a strike at the Transit plant for almost 20 years...
Bob444, Southampton says...
9:38pm Wed 16 Jul 08
Sheitma Pance, Soton says...
10:39pm Wed 16 Jul 08
southy wrote:Typical New labour tactic, this!
fred said "Because its due to this government that manufacturing is being driven out and businesses find working in the UK not as profitable as less taxed countries such as Turkey. As has been mentioned before there are plenty of other companies who have gone the same way" its poor mangerment not the goverment or work skills,and if your going to blame a goverment blame the 1979 to 1989 goverment thats the goverment that screwed up the system.
Sheitma Pance, Soton says...
10:44pm Wed 16 Jul 08
southampton resident wrote:Why? Simple!
I wonder why the costs are so expensive, what with the ridiculously high red tape 'elf and safety costs etc forced upon businesses in this country by the stupid government made up of people who have neverhad to work in the private sector or in a competitive environment. This is the thin edge of the wedge.Unfortunaltely this country is finished, thank you nulabour!!!!!
Sheitma Pance, Soton says...
10:46pm Wed 16 Jul 08
Mad Max, the prairies says...
10:52pm Wed 16 Jul 08
southy, redbridge says...
11:06pm Wed 16 Jul 08
southy, redbridge says...
11:16pm Wed 16 Jul 08
hmm, says...
4:58am Thu 17 Jul 08
southy wrote:Or how about:-
sorry spelling error this part should of said:- your normal for a hard tory voter can't see what pass goverments did and that we are still
british, european and world citizen, says...
7:44am Thu 17 Jul 08
Bob444 wrote:Do you always need to scapegoat, blame someone? Xenophobia is ugly. Its economics. Simply economics. The End.
This is typical of the U.S. We bend over backwards to help them out and put business their way (e.g., the British schools\' SATs were organised and marked by a U.S. company - they then made a mess of it) and they put our workers on the dole (soon will, anyway).
The next U.K. census will be done by a U.S. company - can they be trusted with our information, or is it just another Big Brother exercise?
We are supposed to be in Europe now, so maybe it\'s time to cut free from the Yanks.
We don\'t want to be drawn into any more of their wars either.
Thomas Downes, Southampton says...
8:04am Thu 17 Jul 08
Militant Ford Worker, Coming to a picket line near you says...
9:43am Thu 17 Jul 08
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Anon, says...
9:29am Wed 16 Jul 08