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Peugeot unions consider striking

by RogueTrooper Wed Apr 19th, 2006 at 10:02:47 AM EST

From The BBC. The Company might be French but the striking militants hail from another place.


Unions say they are considering industrial action over the news that 2,300 workers will lose their jobs when a Warwickshire car plant closes.

It follows the announcement that the Peugeot plant at Ryton, near Coventry, will close by mid-2007.

A union spokesman said industrial action may not be taken straight away but they intended to fight the company's decision.

Production at the Warwickshire plant has halted while staff attend meetings.

Peugeot has blamed high production and logistical costs for the decision.



Unfortunatly this has not made the web version of the story. The union leader said that Peugeot would never ha


Des Quinn, regional organiser for the T&G union, told BBC Five Live that it would strive to reverse the decision.

"The plant is productive, and profitable, that they've never denied," he said.

"We'll be trying our best to convince them that their decision is short-sighted, unjust and to overturn it."

One Peugeot employee of 17 years, who attended Wednesday's meeting, said he did not think workers would support a strike.


If only they were French or had joined the euro.

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If it is profitable, why close it? What else is going on? Bringing jobs "home"?

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Wed Apr 19th, 2006 at 10:23:38 AM EST
Over in the Breakfast thread we were discussing the possibility that Peugeot would move the plant to Slovakia, so the jobs are definitely not "going home" to France.

If the plant is profitable, it might be a question of opportunity cost. It might be more profitable elsewhere.

If Peugeot expects most of future sales to be in Eastern Europe, the "logistical costs" will be reduced by moving production, not to speak of lower labour costs.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Wed Apr 19th, 2006 at 10:33:59 AM EST
[ Parent ]
In the FT article on this topic today, they quoted a Peugeot guy saying that each Peugeot 206 cost them 415 euros more than in their French plant.

They also noted that it was part of a strategy to close off smaller plants and focus on the big plants in France (which were likely to have their employment trimemd down as well) and new plants in Eastern Europe.

Financial analysts said it was "logical" and "necessary" in an industry with overcapacity.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Apr 19th, 2006 at 10:48:39 AM EST
[ Parent ]
What is a strike going to do, though? Unless Peugeot workers in other plants which Peugeot intends to keep open strike in solidarity, the strike would go nowhere.

In fact, the British workers should keep at work, and others go on strike, receiving financial support from the British workers to keep the strike going.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Wed Apr 19th, 2006 at 10:35:48 AM EST
Here's the link to the fairly long discussion in the Breakfast Thread this morning.
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Apr 19th, 2006 at 10:40:56 AM EST


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