Tag: Unite

Words by Adam Smith

The owners of GKN Automotive in Erdington have confirmed the factory will definitely close with the loss of 519 jobs.

Melrose Industries rejected a rescue plan brokered by Unite the Union and Erdington MP Jack Dromey to save the factory.

A Melrose spokesman said: “GKN Automotive has fully considered the counter proposals put forward. However, the outlook for the highly competitive automotive market remains unchanged.

“Regretfully, therefore, we are proceeding with our proposal to close the site. Supporting our people continues to be our priority.”

Jack Dromey MP warned the Chester Road plant would be in danger when Melrose forcibly took over the firm in 2018.

As well as the 519 workers at GKN an estimated 1,500 jobs could be at risk in the supply chain of the company, which can trace its history back more than 200 years.

He said: “This decision is devastating for the 519 workers at the Chester Road plant. The workers, supported by the union, Unite, worked tirelessly to produce a comprehensive and detailed alternative plan to closure.

“It is therefore fundamentally wrong that GKN/Melrose have now called time on the consultation process and instead intend to push ahead with closure.

“GKN Chester Road is vital, not just to Erdington and the West Midlands economy but also the whole automotive industry in the UK. If the plant were to close, it would be a betrayal of the 519 workers, of British automotive, and the British national interest.”

He added: “I will therefore be seeking urgent discussions with the Chief Executive of GKN and also the Government, who have publicly indicated their commitment to offer support to allow the plant to remain open.

“The workers at GKN and their union, Unite, are determined to keep the plant open. As their MP, they have my total and unending support.”

Unite national officer for the automotive sector, Des Quinn, said: “Unite calls on all interested parties including central government, local government, the supply chain, customers and GKN Automotive to come together and ensure the factory’s future.

“The UK’s automotive sector needs e-drive suppliers and a sustainable supply chain or the entire UK automotive sector is at risk of collapse.

“GKN Birmingham has the ability to supply the e-drives that the UK’s automotive sector desperately needs, it just needs the vision, support and investment to ensure it has a crucial role to play in the electrification of UK vehicles.”

To find out more about GKN Automotive visit www.gknautomotive.com

For more from Unite the Union visit www.unitetheunion.org

For more from Jack Dromey MP for Erdington visit www.jackdromey.co.uk

Words by Adam Smith

Erdington’s sprawling GKN Automotive factory, Chester Road, is being closed down with the loss of more than 500 jobs.

GKN‘s owner Melrose Industries announced the news, which will bring down the curtain on one of the UK’s oldest engineering assembly lines, to shocked workers this week.

Workers were informed of the decision through a letter from GKN Automotive chief Liam Butterworth, who said: “GKN Automotive has taken the difficult decision to propose the closure of our assembly site at Chester Road, Birmingham.

“Sadly, an increasingly competitive global market means that the site is no longer viable. This is despite significant effort and investment over the past 10 years to reduce the site’s high operating costs and make it competitive.

“Supporting our people is our first priority as we consult on this proposal. Employees at the site are being notified today and support is being made available to them throughout this process. We will then commence a period of consultation with the union and employee representatives in the coming weeks.

“We expect this proposal to impact 519 employees. The proposal envisages that GKN Automotive will carefully wind down the site over 18 months to ensure an orderly and stable transition of operations and give those affected time to find new work. The proposal is to transfer production to other sites in our network.”

Melrose Industries bought GKN in 2018 in a controversial hostile takeover in which they promised to keep the Erdington plant open. GKN can trace its history back to the Industrial Revolution in the 18th century and has been at the forefront of engineering in the UK ever since, the Erdington site assembles automotive parts.

The restructure will not affect GKN’s plants in Sutton Coldfield and Minworth.

Unite national officer Des Quinn said: “The workforce have been left shocked and angry to learn that management is looking to close this highly viable site.

“Unite is now seeking urgent meetings with senior management at GKN to understand the business case and the logic behind this decision.”

He added: “Unite is committed to working with GKN to find a feasible solution, which will keep the factory open and preserve the jobs of this highly skilled workforce.”

Erdington MP Jack Dromey opposed the £8.1 billion takeover in 2018 warning the British multinational Melrose Industries would cut costs and jobs.

He said: “Despite all the warm words by Melrose in 2018 to protect the future prosperity of GKN and its British workforce, the cold reality three years on is that one of GKN’s finest plants now faces closure. Melrose promised a bright future to GKN’s employees – a promise they have now broken.

“This announcement is completely unexpected by employees at GKN. Working together with their trade union, Unite, I will be seeking an urgent meeting with the company.

“Government Ministers also have a responsibility to act after promises they made at the time of the hostile takeover.”

A spokesperson from GKN Automotive said: “Proposing this closure is a difficult decision which has been made despite significant effort and investment over the past 10 years to reduce the high operating costs at the Birmingham assembly site.

“Sadly, an increasingly competitive global market means that the site is no longer viable. Supporting our people is our priority as we consult on our proposals.”

John Taylor Hospice’s former press officer and Pype Hayes resident Ray Woods lamented the closure of the factory and its impact on the community.

He said: ”My thoughts are with the employees of GKN in Pype Hayes. They and their former senior management helped to raise thousands of pounds for John Taylor Hospice. They should be very proud.

“This is another blow for Erdington and the local community.”

To find out more about GKN Automotive, visit www.gknautomotive.com

For more from Unite the Union, visit www.unitetheunion.org