Vauxhall factory receives surplus redundancy inquiries

Car manufacturer Vauxhall has reportedly received more initial redundancy inquiries than the 900 jobs it wants to cut at its Ellesmere Port factory.

It is believed that employees have been tempted by the severance packages on offer and the prospects of other employment in the Merseyside region.

Large companies such as AstraZeneca are believed to have contacted Vauxhall with the prospect of work for some of the staff whose jobs are being cut, reports The Times.

Vauxhall, which is owned by General Motors (GM), is offering severance payments of up to £30,000 and immediate final salary pensions for workers aged over the age of 50 who have 10 years’  pensionable service.

For workers under the age of 50 with up to six years’ service, it is offering payments of £10,000 with a deferred pension scheme.

The cuts at Ellesmere Port have raised fears about the long-term future of the factory, as GM management has insisted that it must compete with other European GM plants for the new Astra model, without which it will be doomed.

GM executives say that Ellesmere Port must improve its productivity to compete effectively for the new model, but unions say the job cuts will remove one shift from the factory, and therefore will lead to a drop in its efficiency.

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