Honda workers accept pay cut to save jobs

Honda workers have agreed to a temporary pay cut to save jobs as car production in the UK continues to plummet.

Nearly 90% of workers at Honda’s factory in Swindon voted last week in favour of a 3% reduction in their pay for the next 10 months.

Union officials said the decision to accept the pay cut would protect nearly 500 jobs at the site, which has been closed for four months in response to the plunge in demand for new vehicles. Staff will also receive an extra six days’ paid leave.

Jim D’Avila, Unite regional officer, said he was very pleased with the deal.

“Compared with other companies like Toyota, Land Rover and Jaguar, whose workers were forced to accept a 10% pay cut and shorter weeks, this is a very good result,” he told Personnel Today.

“We’ve seen a cultural change at Honda with the workers really looking after each other, in this case choosing to take a pay cut to save jobs, whereas before it was every man for himself.”

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Around 220 managers at the site agreed to a 5% pay cut as well as part of the deal.

Production figures published by the Society of Motor Manufacturers and Traders last week showed the number of cars manufactured in the UK fell by more than half in April compared with last year. Production of commercial vehicles fell even more sharply, by 65.2%.