You may have seen on the news that there’s a bit of a furore going on at the moment around whether the Unite union should have stated a claim that a major, unidentified UK plant will go under within days without government help.
Of course, the government themselves in the form of Lord Mandelson – Business Secretary – has stepped forward to condemn the move, saying that it is such comments that could damage the motor industry. Andy Burnham – Culture Secretary – has also come forward to say that these claims were “irresponsible”.
I can see what the government are stating – such claims could well engender further scaremongering in these apparently very fragile economic times. However, the union is rightly sticking up for the workers and as long as this really is a fact then it’s probably worth highlighting it to the general public as well as the government, as it may add extra pressure.
Car firms have been hit by falling demand for new vehicles, meaning that there are now a range of deals on the market, including 0% finance, cash back and many others. However, response to slowing demand by the public has been met with jobs being cut and hours being reduced in others.
Unfortunately, there’s not a simple answer here. People are, sensibly, reducing unnecessary costs. Then to top that, we’re still in the credit crunch, meaning that those who are in the enviable position to buy a new car may not be able to get the credit to finance the purchase. It’s a double bind.
I’m sure that all of our thoughts go out to the 6,000 workers whose jobs may be on the line and we hope that Unite’s statement is incorrect. If it is not however, we sincerely hope that the government steps in with a range of measures to secure the British car industry and jobs for these workers.
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