Selling your classic car? It's FREE to list your car on Honest John Classics | No thanks

Jaguar seeks further redundancies

19 October 1991

By Keith Harper

Jaguar yesterday introduced a seven day moratorium on job cuts to allow 1,400 workers to volunteer for redundancy by the end of next week. The company told union leaders that only 720 staff had responsed to its appeal. It required a further 680.

If the target was not achieved, it would have to sack the rest. The cuts amount to a reduction of one-third in Jaguar's workforce, from 12,000 to 8,000, in less than a year with 2,500 jobs having gone already. From last night, terms for compulsory redundancy were equalised with those for voluntary redundancy.

The company said it needs the deal by November 1. Its redundancy package was complicated and depended on length of service, it said, but it averaged out at £1,000 for every year in Jaguar's employ.

Most staff have been working a three day week for some months, although their pay is guaranteed. In the new year, the company intends to re-introduce a full working week for all staff.

Jaguar's production this year has dropped from 41,000 to 25,000 cars, a fall of almost 40 per cent. The second stage of a two year wage deal, providing increases of 7 per cent, due in November, will not be affected.

Leyland DAF yesterday imposed a 12 month pay freeze on its 6,200 workers after losing £125 million in 18 months. There was no immediate threat to jobs, although union officials said they were concerned. The decision from the company, a subsidiary of the Dutch truck firm DAF, was released in a letter to staff. Most of them are based at Leyland and Chorley, Lancashire, but 2,200 workers operate out of Birmingham and 550 in Glasgow. There are about 300 marketing staff at Thame, Oxfordshire.

The letter said: "This represents the worst trading conditions encountered in our business since the second world war."

More news from the archive

Thu, 07 Feb 1991
NEW YORK TIMES COMPANY NEWS; Jaguar Is Planning To Cut Production AP Published: Thursday, February 7, 1991 The Ford Motor Company's...
Tue, 12 Mar 1991
Jaguar P.L.C ., London, said its sales would fall again this year after dropping by 10 percent, to 42,000 cars, in 1990.
Wed, 18 Sep 1991
NEW YORK TIMES The Rover Group, the British car maker, announced today that it planned to eliminate distinctions between its 35,000...
Fri, 27 Sep 1991
NEW YORK TIMES Chief Is Toppled at British Aerospace By STEVEN PROKESCH, Published: Friday, September 27, 1991 Sir Roland Smith,...
Thu, 03 Oct 1991
Three new Rover cars are to be launched in a £600 million production programme, as the embattled British Aerospace subsidiary yesterday moved another step nearer full merger with the UK operations of Honda.
Sun, 20 Oct 1991
NEW YORK TIMES The Ford Motor Company bought Britain's Jaguar in 1986 for $2.7 billion. It might be sorry it did. The luxury automaker...
Wed, 30 Oct 1991
THE GUARDIAN JAGUAR JOBS GO Jaguar Cars yesterday made 470 workers redundant at its three Midlands plants after not enough workers...
Wed, 27 Nov 1991
NEW YORK TIMES COMPANY NEWS; Jaguar Ownership Published: Wednesday, November 27, 1991 Ford of Britain transferred the ownership...
Sun, 01 Dec 1991
NEW YORK TIMES COMPANY NEWS; Shifts at British Aerospace Published: Wednesday, December 11, 1991 British Aerospace P.L.C. said...
Wed, 05 Feb 1992
British Deal Upheld Reuters Published: Wednesday, February 5, 1992 The European Court of Justice today quashed a European Commission...