Vauxhall’s ‘real team effort’ seals £125m boost for car factory

THE future of a car factory has been secured for years after workers agreed to a “groundbreaking” pay-and-conditions deal, clearing the way for investment worth £125 million.

Vauxhall announced the next generation of its Astra model would be built at its site at Ellesmere Port, Merseyside, creating 700 direct jobs and 3,000 positions in firms that supply parts and services.

Chairman Duncan Aldred, who first worked at the Ellesmere Port factory 20 years ago, said it was a “historic day”.

Confirmation of the investment followed a 94 per cent vote in favour of a new package by the 2,100 workers at the site. Assembly of the new car is scheduled to start in 2015, with a minimum of 160,000 vehicles to be produced each year, 20,000 more than last year.

Vauxhall will also raise the local supply content for the Astra to at least 25 per cent, which will create further employment locally and in the UK.

The new deal will see a four-year pay agreement, including a two-year wage freeze from 2013, production on 51 weeks a year and scrapping of the traditional summer and other closures which have been a part of UK industry for decades.

The Prime Minister, motor industry leaders and union officials all welcomed the development, which followed news that the number of cars built in the UK last month was almost 10 per cent up on a year ago, boosted by strong export demand.

Mr Aldred said: “This is great news for the Ellesmere Port plant, our employees, the local community, our suppliers, the Vauxhall brand and the UK.”

Prime Minister David Cameron said: “This has been a real team effort, with the government, the company, unions and workers all focused on keeping production in the UK.

“And the workforce at Ellesmere Port should take great pride in their skill, hard work and commitment which has proved vital to ensuring this great result today.”