Tata Says It May Slash UK Workforce without Government Support

Although Tata Motors recently warned that it may cut jobs in the United Kingdom without government support, Jaguar Land Rover insisted that no layoffs will take place for the time. Workers earlier this month agreed to receive a pay freeze corroborated with shorter working weeks in return for the company to guarantee their jobs. According to autocar.co.uk, the deal will become effective in early April.

“The contract is in place with the workforce and there would be an enormous storm if it was broken," said Don Hume, Jaguar Land Rover's Corporate Affairs Director. "This is an agreement that will be honoured.”

Ratan Tata told Sky News that Tata Motors may turn to job cuts unless the company receives support from the UK government, citing the economic recession as the reason. The parent company is struggling to reduce costs in every single possible area, so such a move would pretty much make sense, he said.

"So layoffs will take place, redundancies will take place, or in some cases, as has already happened in the UK, but not with us, plants have closed," Ratan Tata stated in the interview.

On the other hand, Tata Motors said last December that it is willing to help its UK brand Jaguar Land Rover but refused to provide specific details on the amount of money to be injected in the British automaker. Nevertheless, the United Kingdom government has always been open to talk, as several officials confirmed the country is willing to give money to ailing automakers.

"The government stands ready to help companies in the current difficult economic circumstances but does not have an open cheque book. The government has been in regular contact with Tata over Jaguar,” an UK representative was quoted as saying by Reuters.