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08/01/2009
Nissan Announces 1,200 Job Cuts
Car manufacturer Nissan has announced it will be axing 1,200 jobs as the onslaught of the credit crunch continues to affect the motor industry.
The cuts will be at the company's Sunderland plant, which currently employs around 5,000 workers. It is one of the biggest and longest-established employers in the North East of England.
The plant, which opened in 1986, sent workers home early before Christmas to cope with the economic downturn.
Those who will lose their jobs include 400 staff on temporary contracts.
Figures released yesterday showed Nissan sold 66,336 new cars in the UK in 2008, only 0.14% fewer than in 2007, which was much better than the national average which saw new car sales decline by 11.3% in 2008.
However, Nissan sales for December 2008 fell 26.68% compared with the same month in 2007. This compared with a national decline of 21.2%.
Derek Simpson, Joint General Secretary of the Unite Union described the losses as "devastating news" for the workers and their families.
He added: "Today's announcement shows just how serious Britain's economic difficulties are.
"Unite will be doing everything possible to minimise compulsory redundancies and it is absolutely crucial that these workers’ skills are not lost."
Responding to the announcement, Business Secretary, Lord Mandelson, said: "I appreciate that this will be a tough time for workers. Together with ONE NorthEast, we will help any employee find alternative opportunities as quickly as possible.
"We will also be working with Nissan to secure new investment for Sunderland and to make sure that the UK is best placed for the upturn and re-creation of jobs as the economy improves. This is a highly skilled workforce that has many of the skills that UK and worldwide industry will need as conditions globally improve.
He added: ""We also need to look to the future and our commitment to the development of low carbon vehicles as an integral part of the UK automotive industry. As part of that aim I want to visit the plant as soon as possible to start work with Nissan on plans to bring manufacture of Nissan's new family of electric vehicles to Sunderland."
(JM/BMcC)
The cuts will be at the company's Sunderland plant, which currently employs around 5,000 workers. It is one of the biggest and longest-established employers in the North East of England.
The plant, which opened in 1986, sent workers home early before Christmas to cope with the economic downturn.
Those who will lose their jobs include 400 staff on temporary contracts.
Figures released yesterday showed Nissan sold 66,336 new cars in the UK in 2008, only 0.14% fewer than in 2007, which was much better than the national average which saw new car sales decline by 11.3% in 2008.
However, Nissan sales for December 2008 fell 26.68% compared with the same month in 2007. This compared with a national decline of 21.2%.
Derek Simpson, Joint General Secretary of the Unite Union described the losses as "devastating news" for the workers and their families.
He added: "Today's announcement shows just how serious Britain's economic difficulties are.
"Unite will be doing everything possible to minimise compulsory redundancies and it is absolutely crucial that these workers’ skills are not lost."
Responding to the announcement, Business Secretary, Lord Mandelson, said: "I appreciate that this will be a tough time for workers. Together with ONE NorthEast, we will help any employee find alternative opportunities as quickly as possible.
"We will also be working with Nissan to secure new investment for Sunderland and to make sure that the UK is best placed for the upturn and re-creation of jobs as the economy improves. This is a highly skilled workforce that has many of the skills that UK and worldwide industry will need as conditions globally improve.
He added: ""We also need to look to the future and our commitment to the development of low carbon vehicles as an integral part of the UK automotive industry. As part of that aim I want to visit the plant as soon as possible to start work with Nissan on plans to bring manufacture of Nissan's new family of electric vehicles to Sunderland."
(JM/BMcC)
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