This week saw the very disappointing announcement that a further 340 permanent and 160 temporary staff would be made redundant from Honda. Understandably this will be an anxious time for all staff potentially affected.
As this follows last year’s loss of 800 staff our first concern was of the long-term future of Honda in Swindon. Thankfully they remain absolutely committed, having invested £250m in the Swindon plant since 2011. However the current projected sales of 120,000 per year, well below the 250,000 capacity for the Swindon plant can be produced by the consolidated one line.
In many ways this news is surprising. For the first time since when I was born in 1976 the UK is exporting more cars than it is importing. However Honda’s market share has fallen, in stark contrast to their competitors as we can see with the BMW plant in Swindon. It is clear the current models haven’t caught the market’s attention and I have therefore pressed Honda to bring forward next year’s planned four new designs for the European market. Those shown at major car exhibitions have been well received, so getting these to market as quickly as possible is crucial to reversing the disappointing sales.
As with last year's job loss announcement, myself and Robert Buckland MP will work with a host of organisations through a task force. The work of the task force has the full support of the Prime Minister, which I raised this at Prime Minister Questions this week.
It is a real credit to Honda that they both have given good notice, and allows a whole host of external organisations to work with those potentially affected. Last year of the 800 staff that lost their job only 34 ultimately left Honda with no alternative.
The task force will comprise of: Swindon Borough Council, Forward Swindon, Jobcentre Plus, UKTI, DWP, BIS, Unions, Money Advice Service, Outset Swindon, Business West, New College, Swindon College and the Skills Funding Agency.
Each member of staff will be offered tailored support which will cover different areas. This will also be offered to any staff also affected in the supply chain.
For those seeking alternative work, there will be help preparing CVs, applying for jobs and the opportunity to formalise the skills they have built up whilst working for Honda. We will also repeat the very successful Jobs Fayre which brought potential new employers directly to the staff affected. For those seeking to start their own business or considering taking early retirement there will be personalised financial advice, mentoring and support offered.
This joint working is crucial for both the staff and the local economy and we will collectively do absolutely everything we can to support those affected.
