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Economics, government & businessLatest NewsDepartment for Business, Energy and Industrial Strategy (BEIS)Job creation and lossesLabour market

Rover employees called to mass meeting

by Mike Berry 11 Apr 2005
by Mike Berry 11 Apr 2005

Workers at MG Rover’s Longbridge plant in Birmingham are holding a mass meeting to hear about efforts to save the factory.

A government task force set up to deal with the crisis is also holding its first meeting, with a £6.5m gvernment loan ensuring the company’s survival for another week.

The action temporarily staves off potential redundancies by ensuring that wages and expenses can be paid as talks go on with the Chinese firm which may be Rover’s saviour.

Hundreds of workers at engineering companies which supply the company with components were laid off this weekend in south Wales and the West Midlands.

Trade and industry secretary Patricia Hewitt is prepared to fly to China with trade union leaders in an effort to keep the business afloat.

Hewitt said the government had agreed to provide the loan “in order to avoid the issuing of redundancy notices at MG Rover while efforts are made to keep the business together”.

Last week the company called in administrators from PricewaterhouseCoopers. They are still assessing whether the firm can be saved.

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Mike Berry

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