JCB chairman calls for wage subsidies from Government
Industrialist Sir Anthony Bamford has called on the Government to support manufacturing jobs through wage subsidies as companies battle through one of the worst recessions in memory.
The chairman of Staffordshire-based JCB, one of the world’s biggest makers of construction machinery, also wants the UK to undertake a multi-billion-pound infrastructure investment programme to speed up economic recovery.
Sir Anthony, whose privately-held company has cut 2,500 jobs since the end of 2005, made his remarks in an interview with the Financial Times.
He was speaking amid further evidence of the global downturn’s impact on manufacturing. Workers on the XK sports car line at Jaguar’s Castle Bromwich plant in Birmingham were on Monday stood down for another week of non-production – just 24 hours after colleagues worked a weekend of overtime.
Sir Anthony, who has run JCB, the family company founded by his father Joe, said the downturn was the worst he has ever known.
He told the FT he would like the Government to subsidise some of the wages of employees put on short-time working as a result of falling orders. Similar schemes, aimed at preserving skills that might otherwise be lost if employees were made redundant, operate in Germany, France and other major European countries.
Because it has already gone through a major redundancy programme, JCB itself would not benefit from such a scheme, Sir Anthony said.
“But wage support is a better way of doing things because it is less brutal and less black and white,” he was quoted as saying.
He accepted, however, that the company would benefit from a major programme of investment modelled on projects in the US and China.
Jaguar Land Rover said halting XK production for a week would result in the loss of about 100 cars.
Workers on other lines were called into the Castle Bromwich plant at the weekend for overtime duties to help pave the way for Jaguar’s new 2010 models.
Jaguar spokesman Don Hume said the week of non-production of the XK model had been planned for some time in order to match output with demand, while only a “handful” of employees were involved in overtime working.
“Right now, Castle Bromwich is realigning production to prepare for the all-important new 2010 Model Year cars – supercharged XFR and XKR, normally-aspirated XF and XK and the new 3.0 litre diesel XF, plus other model changes.
“This is a mammoth task to achieve at one time, while still ensuring the plant continues to meet Jaguar’s rigorous quality standards...and existing production requirements are also met.”
Earlier this month, JLR workers voted by 70 per cent to 30 per cent to accept a shorter working week and a pay freeze.
