German strike
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'UNLESS the seven week old metalworkers' strike in West Germany is settled soon there could be further serious effects on cv production in Britain. Already the production of Bedford CF vans at Luton has had to be stopped and 241 Bedford workers laid off, the remainder of the 800-strong CF line workforce being redeployed.
There was a glimmer of hope this week that an independent mediator would help reach an agreement.
This is seen as the last chance by engineering employers after talks with the union broke down again. The two and a half million members of the engineering union are on strike for a 35 hour week.
Already the strike has made 450,000 German workers idle. Production has been halted at VW, Ford, BMW and Opel plants. Both the UK importers of German-built commercial vehicles, MAN-VW and Mercedes-Benz, continue to officially insist that the strike is not yet affecting the supply of their vehicles or parts. However, it is clear that even if this is so at present, there will be problems later this year. The availability of Mercedes' new LN2 ranger which goes on sale in the UK next week, and MAN's new 16-tonner, which • is due to be launched later this year, is bound to be badly affected.
The management has offered a two hour reduction in the working week for night shift workers and a 3.3 per cent wage increase. It has also proposed lowering the retirement age from 60 to 58.
In the meantime an OECD report this week predicts that inflation throughout Europe will remain stable for 18 months but that unemployment will continue to rise.