Leyland Daf freezes pay
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/ Leyland Daf is imposing a 12-month pay freeze on its 6,200 UK employees following losses of £.125m over the past 18 months.
The freeze is due to start on 1 January 1992 and so far union response has been muted. The company blames the move on the worst trading conditions since the Second World War. The freeze was announced last Friday; so far the response from the workforce has been positive, says Leyland Daf.
It hopes that the unions will see the decision "in the context of the losses we have taken" and describes the freeze as "a means of saving costs without jeopardising jobs and investment".
The TGWU has not yet responded to the proposal but John Allen, the AEU's chief negotiator at Leyland Daf says: "We don't think this is the answer to the company's problems — nevertheless our members have agreed to similar proposals in the past to save jobs."
Industry sources believe the unions will accept the freeze rather than risk more job cuts. Sales of Leyland Daf trucks are not expected to exceed 32,000 this year — 53% down on 1989. In the same period van sales have slumped from 146,000 to a projected 85,000. But if sales do not fall any further the company hopes to break even by the final quarter. Normal wage negotiations could then resume in the autumn of 1992, ij Full production has resumed at diesel engine manufacturer Perkins following a month-long strike over a two-year pay deal. The AEU has opposed a 24month wage offer of 6% in 1991 and rate of inflation rise in 1992.
Instead the workforce has accepted a 21-month deal expiring in April 1993 comprising 6% in the first year followed by 5% or the rate of inflation in the final nine months.
Perkins supplies engines to AWB, Renault, Seddon Atkinson, Foden and ERF.
The engine manufacturer says that spare production capacity will ensure it meets "agreed build programmes".