Last Friday’s news that Honda are to make 800 associates redundant at their Swindon plant was extremely disappointing. It was only in April that we were welcoming the 500 new jobs created in preparation for the recovery of the car market in Europe. Sadly, this recovery simply hasn't come. Whilst Honda's car sales in the UK have been extremely strong – up 7.2% last year against the 5% industry average – the European market has fallen off a cliff face. Sales in Italy are down 20% and in Greece a staggering 50%. With 40% of the cars made in Swindon being for export to Europe, the problems in the Eurozone have had a significant impact on the plant.
Whilst Honda has historically seen fluctuations in its workforce, I know that Friday’s news was a shock to the whole Town. We are rightly proud of our manufacturing heritage and I have been extremely touched by the speed with which local groups and organisations – from the Council and business groups to the local Job Centre staff and training organisations - have rallied round to see what help they can give.
On Monday, Robert Buckland MP and I attended the first meeting of the Area Action Task Force, a coming together of these groups and organisations to ensure that the right support is available for the 800 associates made redundant. Working with Honda, we will be setting up a single ‘hub’ onsite at the plant to provide the associates with whatever help they need, be it CV writing, job searches or advice on financial support. Alongside this will be things like retraining sessions and skills workshops to help Associates build their CVs. There will also be one-to-one help for those who need it.
I have also been busy meeting with other local employers, such as Aldi, to discuss their recruitment plans and the sorts of job opportunities available. That way, when the hub is up and running, we will know exactly where alternative jobs are and can support some of the associates into work locally.
I am confident in Honda’s commitment to Swindon and there are reasons to be optimistic. There are signs that the crisis in the Eurozone may have bottomed and as things recover, demand for new cars will pick up, just as it has done in the UK. Honda are also bringing forward the new 1.6 litre diesel engine which will provide new opportunities. This is why I am meeting other local employers as it is vital we do not lose these skilled individuals from our local economy. Manufacturing has been at the heart of Swindon for decades and we must ensure that it remains so for many more to come.