Honda Workers Agree with 3% Pay Cut
Additionally, managers at the aforementioned production facility will get a 5 percent pay cut, as part of the same cost-cutting scheme established by the Japanese automaker. Although not confirmed, it appears the cut will last until March 2010, the time when the Japanese manufacturer expects to see the first signs of recovery at this particular production facility.
"In return for a temporary 3% cut in pay, we can ensure that hundreds of workers will stay in work. The workers have been paid during this period and will pay the company back by working extra hours once they return to work. This agreement sets an industry benchmark for protecting jobs during this recession," Jim D'Avila of the union Unite commented on the pay cut.
The Swindon plant has been closed for no more than four months following the collapsing new car demand in the country but Honda expects to see deliveries rising, partially thanks to the scrapping scheme announced by the government. The country is offering up to 2,000 pounds to customers who agree to trade in their old car for a new, less-polluting and more fuel-efficient vehicle.