New Transit might not be built at Ford's Southampton plant

5:02pm Wednesday 16th July 2008

By Simon Carr

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"

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.

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.