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Latest NewsEconomics, government & businessJob creation and losses

Peugeot warns of further job losses if unions’ boycott campaign succeeds

by Mike Berry 7 Jul 2006
by Mike Berry 7 Jul 2006

French car maker Peugeot has hit back at a £1m trade union advertising campaign against the closure of its UK factory.

Amicus and the Transport and General Workers unions have put adverts in national and regional papers and on posters close to Peugeot dealerships in protest at the closure of the firm’s factory. 

Unions started the boycott campaign last month following the decision to close the Ryton plant in Warwickshire next year with the loss of 2,300 jobs.

But Peugeot has accused the unions of putting at risk the jobs of 5,000 workers who will still be employed after the plant closes.

The firm said it had studied a union plan detailing an alternative to closure but said it was not viable.

The final late shift at the Ryton plant near Coventry finishes today with production reduced from two shifts to one from next week.

Jean Marc Nicolle, Peugeot Citroen vice-president, said the firm had consulted fully with unions and was investing £5m to help workers to find alternative work.

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“We remain firmly committed to that process and in ensuring that none of our people would be left to face the future alone,” he said.

He also said Peugeot did not believe the union campaign would be successful.

Mike Berry

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