Linamar to close. Was Ford partly to blame?
Posted on Wednesday, July 7, 2010 at 7:00pm
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TODAY we found out that the Linamar car parts factory on Fabian Way in my region will close, perhaps at the end of 2010. From those I know who work there, they are in and out of meetings with management all day today, trying to come to some sort of agreement.
Whether this is too late at this stage, I do not know but I will certainly try and keep people updated. It is a tragedy for the area that up to 200 jobs will be lost – affecting those that live in and around Swansea and Neath Port Talbot. Staff are dismayed at this closure announcement for three reasons, which I have been helping them campaign on for some time now:
1. Linamar has told them that it is closing the factory because workers refused to accept new terms and conditions- despite the fact that the company took over the plant agreeing to honour existing pay and conditions. These new conditions would have seen some staff lose up to £600 a month.
2. According to Linamar’s own rankings, its Swansea plant is one of the best performing factories in the whole company. But the work is being transferred to a plant in Mexico that is one of its least efficient.
3. Staff are extremely angry that Ford, yet again, has refused to honour promises to source work from Linamar. The First Minister will know this, because I raised the issue with him a couple of months ago.
There was concern then that a multi- billion pound grant was being provided by the last UK Labour Government for the building of the new eco- boost engine at Bridgend, but none of the parts for this new engine were to be sourced in South Wales. I mentioned this to him and received a very non-committed answer.
What can the Welsh Government do now to ensure that companies in Wales that are given grants are compelled to bring benefit to the wider Welsh economy? I will be raising this matter again with Welsh Government ministers, hoping that they are initiating talks with both Linamar management and Ford to look at any possibility for contracts to Linamar from Ford Bridgend, so that the factory can stay open to benefit the local area, and that jobs can be saved.
