Vauxhall (Redundancies) — House of Commons, 2017-10-16
Topic: Labor
Claire Louise Perry (Conservative, Centre-right): Just over 53 years ago, the first Vauxhall Viva rolled off the production line at Ellesmere Port. Since then, seven generations of Astra have been built at the port. Most recently, the plant secured the contract for the mark 7, primarily based on the productivity and co-operation of the local workforce. That is why it is particularly disappointing to hear that Vauxhall is considering voluntary redundancies of up to 400 staff at the Ellesmere Port plant As we said last week, this is a concerning time for families, particularly in the run-up to Christmas. I assure the hon. Gentleman and other right hon. and hon. Members that, once again, the Government are standing by to do all we can to support those affected. The Department for Business, Energy and Industrial Strategy is continuing to speak with the company, the unions and the wider supply chain and the Department for Work and Pensions is standing by to provide advice and support to those affected I will address three points. First, I will set out what is actually happening to try to reassure people who may be affected by the announcement today. Secondly, I will give some background to what I understand are the reasons for it happening. Thirdly, I will put the announcement in the broader context of the automotive industry Today, I have spoken to the head and deputy head of Cheshire West and Chester Council, the chief executive of the local enterprise partnership, the general secretary of Unite the union and the chief executive of Vauxhall UK. The consensus view is that this is due to a downturn in the sale cycle, particularly that of the Astra model, and the company is working through questions about the plant’s overall competitiveness I am told that workers at the plant have been informed. The statutory consultation period will now take place and no final decisions will or should be taken until it has been completed. The company is hopeful that reductions can be managed on a voluntary basis, and we will continue to work closely with it on its planning I was pleased to hear today from the leader and deputy leader of the local council that a redundancy action support plan, which has been used before, will be put in place and will involve the LEP, the council and the Department for Work and Pensions all working together. Given that many of the people working in the plant travel across the border from Wales to their jobs every day, it is particularly important to note that the Welsh Government have been involved and stand by, ready to support any activities Given how many skilled workers may be affected by the announcement, we are particularly keen, as we discussed last week, to ensure that those skills are not lost to the industry. I have asked that the Government’s talent retention scheme be deployed, if appropriate, and both the company and Unite the union have agreed that that would be helpful and will agree to work with us. As I have said, I understand that this is a particularly troubling time and we are all absolutely concerned to minimise worries, particularly in the run-up to Christmas As I have said, I am told that this is happening because the C-segment class, in which the Astra vehicles sit, is not selling brilliantly across Europe and, in particular, the sales forecast for that model has not been as desired. Therefore, a decision has been taken to maintain the competitive position of the plant, and that announcement is being made today. The Secretary of State and I have consulted the company extensively on its future plans, both for the plant in Elsmere Port, particularly given its long and illustrious history, and for the company and its footprint in the UK That brings me to my third point about the broader context. As we have seen with many other companies, the technology in the auto sector is pivoting away from the traditional models, towards electric, potentially connected and autonomous vehicles. We are doing all we can to support manufacturers in that shift, and to position the UK as the leading place for those decisions and investments to be taken We have already delivered more than £500 million of public and private money through the Advanced Propulsion Centre. We will spend £1.25 billion of Government investment over the next five years to support that. The Faraday challenge is particularly important—we have invited all operators to contribute to it—and will help us ensure that we are the leaders in developing the electric battery technology of the future Of course, the auto industry has been an incredible success story. Thanks to the workers in the plants, we now have the highest productivity levels in Europe and sales of cars made in the UK are up 70% since 2009. It is a huge success story and we have generated many exports All of us in this House should think really hard about the message we are sending to those looking to invest in this industry in the UK—[Interruption]—and back the fact that we have highly productive plants and highly skilled workforces. Regardless of the changes that may happen in this sector, this is the place for auto companies to invest in the future. Perhaps Members who want to chunter otherwise should think about the messages we are sending to those investors Another important point—