Honda Workers Agree with 3% Pay Cut

Honda is still struggling to tackle the economic recession and, as part of its efforts, it recently asked workers at the Swindon factory to agree with a temporary 3 percent pay cut. The reason? Honda might be otherwise forced to turn to job cuts which would be obviously harsher than a pay cut. According to a report by whatcar.com, the employees have already agreed with the salary reduction that will come into effect in June, which is regarded as a first step towards Honda securing jobs at the plant.

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.