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Toleman loses Vauxhall deal

25th October 1990
Page 14
Page 14, 25th October 1990 — Toleman loses Vauxhall deal
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Which of the following most accurately describes the problem?

• Toleman Automotive has lost its plum 22m/50,000vehicle contract with Vauxhall Motors at Luton after drivers and ancilliary workers at its Slip End site rejected a 25% pay-cut package similar to that agreed at most of the car transporter's other UK bases.

The loss comes as the latest blow in a week in which the company has been struggling to reach an agreement at Halewood, Merseyside where up to 180 workers have rejected a pay-cut formula and are seeking a productivity deal (CM 18-24 October). As a result, up to 1,000 Ford cars a day are joining the stockpile.

To prevent a similar situation at Luton, Vauxhall Motors has placed its car transporting business with three of Toleman's rivals — Mainland Car Deliveries, Autocar and Abbeyhill — and Toleman holds out little hope of recovering the business.

Toleman says it is determined to maintain its 3.6ha site at Markyate Road, Slip End. "We have a long lease on the premises", says Peter Pegg, in charge of marketing, "so we shall keep on our clerical staff and we still retain the IBC van contract. We may sub-let some of the premises or use it for dealer storage."

However, 31 staff will lose. their jobs, including 24 drivers.

Toleman believed it had reached an agreement at Luton on 12 October after the Transport & General Workers Union agreed to put a package to its members similar to that which had won acceptance elsewhere. This included 25% pay cuts until the end of the year with the reintroduction of profit sharing in 1991.

But when the workers held a plant vote on Monday 15 October the package was rejected, amid concern that it violated the regional agreement. Toleman responded by issuing dismissal notices to 31 workers involved, accusing them of "going back on their word".

By this time Vauxhall's patience with the two-week stoppage was exhausted and it awarded the business to Toleman's rivals. The TGWU has hit back by continuing to picket Toleman's site, although it would seem impossible to win reinstatement for the 31 sacked workers now the business has gone elsewhere. At Halewood, things are more hopeful. Toleman and the TGWU met twice over the weekend for "exploratory talks", and this Monday they went into formal negotiations involving district union officers and senior shop stewards.

"Our people are reporting for work but are being given nothing to do," says TGWU district officer Jim Gouldbourne, "but I'm hopeful we can reach an agreement which will satisfy both parties." However the union believes this cannot happen until the company allows normal working to recommence.

Whatever happens, it is known that Toleman does not welcome the support of Employment Secretary Michael Howard, who has been vocal in applauding an agreement which includes wage cuts. Instead, the company blames government policies for some of the difficulties it has experienced. Cl Silcock Express, which claims to be the UK's largest car delivery firm, has bought 10 more drawbar transporters, based on Leyland Daf/FA 2700 HS rigids. Silcock will operate the vehicles on its Ford contracts in Dagenham, Essex, and Halewood, near Liverpool.


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