Strike hits Ford sales plans
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THE DECISION of 48,000 Ford workers to strike in support of a pay claim increase in excess of the Government's five per cent guideline could have serious repercussions on the company's commercial vehicle sales plans.
As Britain's largest vehicle manufacturer, Ford has over 25 per cent of the market and is looking to increase this substantially in the next few years, possibly by two per cent next year.
These plans could be set back as a result of this dispute.
It also has its sights set on Europe and in the heavy haulage market. Although the Transcontinental is built in Holland, its production could be affected since solidarity with Dutch unions cannot be discounted.
Ford chairman and managing director Sir Terence Beckett said this week that unions had acted in breach of a no-strike agreement which had four weeks to run.
He said that the strike was a political rather than an industrial issue.
If Ford agrees to an increase in excess of the guidelines it will face massive Government sanctions. It is known that there were plans for early productivity bonus negotiations which must now be shelved.
According to a shop steward, this could be weeks, months, or "even years" away. A similar strike in 1971 hit Ford for nine weeks.
Ford was planning a substantial capital investment in plant. Whether or not this will come to fruition will be decided when the dispute has ended.
Leyland Vehicles Ltd has decided already not to invest the £32m planned for its Bathgate factory where 1,500 machinists will return to work on Monday after a seven-week strike which threw 5,000 production-line workers out of work.
Fears this week that development of the Albion plant in Glasgow would be curtailed, as money earmarked for it may now be used to expand Lancashire production facilities, were answered by a visit to the plant by LV Scottish general manager Frank Andrew.
Chrysler unions are still acting warily over the Peugeot-Citroen takeover, but this week Roy Jenkins, European Commission President, said he welcomed the takeover of Chrysler in Britain and France.
He said that, subject to closer examination, the takeover did not appear to infringe EEC rules designed to ensure healthy industrial competition.