Two-year pay freeze at Vauxhall

Vauxhall car workers have agreed a two-year pay freeze
12 April 2012

Thousands of Vauxhall car workers have agreed a two-year pay freeze and pension scheme savings as part of a "turnaround" plan aimed at making huge savings, the company said.

The company is aiming to save more than £200 million in Europe, 10% of which will be in the UK, where Vauxhall has factories in Luton and Ellesmere Port.

The car giant also confirmed plans to invest billions of pounds in new products and other initiatives.

Duncan Aldred, managing director of Vauxhall Motors, said: "We are proud of our employees' continued support and our excellent relationships with the unions. We believe that we have come to a positive agreement which recognises the outstanding achievements of our manufacturing facilities and the drive and enthusiasm of our employees."

Vauxhall has announced that its Ellesmere Port plant will move to three shifts in the first half of 2011 following the introduction of the Astra Sports Tourer estate car alongside the current Astra five-door hatchback and the AstraVan.

At Vauxhall's Luton plant, the firm said talks continued in a positive vein with Renault on the opportunity for joint development and production of the next generation Vivaro van.

The current Vauxhall/Renault joint venture runs out in 2013, but Vauxhall said it was optimistic that talks about a new generation Vivaro will be successful.

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