Honda workers begin four-month paid break as production halted
Workers at the West's biggest car plant could well end up better off during an enforced four- month shutdown – but those at firms that supply Honda will suffer.
Hundreds of jobs in the region will go because of the Honda shutdown, which began last night as the last of the shift workers clocked off.
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From Monday, some 3,600 Honda workers will receive basic pay for not working for four months, dropping to reduced pay after two.
Around 1,000 are taking redundancy – called "voluntary severance" – but union representatives said the knock-on effects would be worse than the shutdown.
Hundreds of jobs in Swindon and Gloucester have already been lost among firms who supply parts to Honda.
Union representative Jim D'Avila, from Unite, said: "We've managed to negotiate a good deal with Honda, so that it averages out at around 88 per cent of pay over the four months, with workers making up the hours when the plant reopens."
As shift workers left yesterday, he added: "It's mixed feelings today at Honda.
"They'll have a heavy heart, especially the ones who have taken the voluntary severance package.
"About 1,000 viewed it as an attractive package, but for those who are staying, we've been able to protect their hours and their pay.
"It is interesting because the reality is that some will be better off – they might well have been able to line up temporary jobs or part-time jobs and will be therefore having two incomes.
"There's also a bit of creativity going on. Many of the men are saying that they'll stay at home and encourage their wives to go out and get jobs at Asda or Tesco or somewhere and they'll look after the children and build up a greater bond with them."
Workers had mixed feelings yesterday, with many fearful for the future but thankful they had not been made redundant.
Father-of-one Chris Laye, 30, from Swindon, has been a team leader on the engine production line for eight years.
He said: "Everybody's hopeful it is going to get better and that the economic downturn is going to improve eventually. It's just about how long you can hold on for before it starts to pick up. I'm staying on through the four months, although many people have decided to leave," he added.
Paul Wiseman, 33, a general associate in the engine plant, said the mood on the factory floor was sombre.
He said: "Everyone is feeling a bit down as we're all facing four months off, and we're all a bit worried that it might be more."
But Mr Wiseman, who lives in Swindon with his wife of six months, said most staff empathised with the decision made to stop production.
"Everyone has seen the news, we all know we're in a recession," he said. "Honda is trying their best, and there's always a fear that we could lose our jobs, but Honda have told the staff its future is in Swindon."
Mr Wiseman, who has an £850-a-month mortgage on his three-bedroom house, said the reduction in his income would put pressure on his wife, 29, a radiographer, who will work extra shifts to keep the couple afloat.
He said: "I'm going to save as much as I can. We won't be going on holiday this year. My wife has a long list of decorating jobs I can get on with."
But Mr Wiseman said he was remaining optimistic, and had signed up for unpaid voluntary work at the Great Western Hospital to keep him busy until June.
The worst effects will be around the Honda plant, which dominates the landscape of north and east Swindon. Hotels, pubs and stores are suffering, while the businesses that supply Honda are already cutting staff.
One hundreds jobs are going at supplier Takao in Brockworth, Gloucester, while 100 more are affected at other suppliers in the region.
Yesterday, Swindon car- leasing firm Arval announced 80 redundancies.
Now the whole of Swindon is holding its breath and waiting until June when the production lines reopen – they hope – and until the autumn when the new small Honda, the Jazz, is launched.







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