Global crisis hit Tata's JLR; cuts 200 jobs
London, Oct 17 (UNI) Tata-owned Jaguar and Land Rover (JLR) has downsized 200 jobs following the recession and shrinking car sales due to the global financial crisis.
The company said the move to cut 200 jobs was an efficiency drive rather than a response to the poor car market.
Although, Jaguar has experienced a slight sales bounce with its new XF model, the Land Rover division has suffered a significant slide in sales. Last month, sales fell 49 per cent compared with September last year.
The cutting of 200 jobs from its workforce of 16,000 in the Jaguar and Land Rover units is not even a full drop in the ocean of the unemployed.
Over two million are already jobless in the country and the number is predicted to climb to three million. The car makers are cutting jobs with car sales dropping rapidly.
In fact, concerns about the European car industry prompted President Sarkozy of France to ask the European Union to consider a US-style cash injection for carmakers after appeals from the industry for 31 billion pound. Silvio Berlusconi, the Italian Prime Minister, also said that he supported the initiative.
Jaguar Land Rover's factories are working only four days a week or are facing production cuts. This month the Halewood plant on Merseyside, which makes the X-type Jaguar and the Land Rover Freelander, will not operate for a week. The Vauxhall plant near by at Ellesmere Port is closed to reduce output.
Dave Osborne, national secretary of Unite union, for the automotive sector said, ''Clearly the company is responding to the changes in the market. There is a global downturn and part of the company's strategy to weather this is to cut costs through voluntary redundancies.'' Britain's biggest union also called on Ministers to support a bailout and provide cash for manufacturing.
Tony
Woodley,
joint
general
secretary
of
Unite,
said,
''The
British
Government
has
led
Europe
on
a
financial
fire-fighting
strategy
but
it
is
time
for
us
to
follow
France
and
Italy
in
acting
to
stop
the
crisis
sweeping
away
our
remaining
industrial
base.
If
there
is
aid
at
the
EU
level
to
support
manufacturing,
then
our
Government
should
be
fighting
to
ensure
British
manufacturing
gets
its
fair
slice
of
it.''
UNI
XC
SBA
HS1921