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HR practiceHR strategy

Vauxhall staff agree to a two-year pay freeze

by Personnel Today 24 May 2010
by Personnel Today 24 May 2010

Vauxhall staff have agreed to a two-year pay freeze as part of a Europe-wide restructuring deal.

The workers at plants in Ellesmere Port and Luton signed the agreement with General Motors (GM), which now owns Vauxhall in Europe.

GM said the deal would save £23.1m (€26.5m), as cuts worth £228m (€265m) are planned across Europe.

The two-year pay freeze in the UK has already begun, starting at the beginning of 2010, the BBC has reported.

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A total of 519 jobs have gone from the Luton plant and at the company’s headquarters.

Nick Reilly, chief executive of Vauxhall, said: “Employees demonstrated they are ready and willing to contribute to the company’s future when they are offered security and long-term prospects in return.”

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