Ford To Axe Up To 850 Jobs

Car giant Ford is to axe up to 850 jobs in the UK, it has been announced.

The decision to cut the jobs - which include between 400 and 500 at the Transit van plant in Southampton - came as a response to the "serious economic situation".

The workers are to be offered voluntary redundancy packages, and the Southampton cuts are to take place by May.

Around 350 jobs are also to be lost across the company through a restructuring of salaried staff.

Ford said it also hopes to "re-evaluate" this year's pay deal of 5.2%, adding that its business situation had worsened "significantly" since it was drawn up last October.

In response, unions have said they still expected the pay increase to be honoured.

Sandra Gidley MP said it was "tragic news" and claimed the government had been "slow to act".

She added: "This is tragic news for the plant, the workers and the city.

"That is bad enough, but Ford are creating extra uncertainty by renegotiating the recent pay deal.

"I have been consistently raising concerns for some months, but the government have been slow to act."

John Fleming, Ford of Europe Chairman and Chief Executive Officer, said: "As demand across the industry continues to fall, we are facing some immediate and major challenges.

"Those companies which act quickly in taking the right decisions will be those who not only survive but who emerge strongest from this deep recession."

(JM/BMcC)