5,000 jobs go at Rover
Administrators to MG Rover have revealed that more than 5,000 redundancies will have to occur at the carmaker’s Longbridge plant.
The announcement follows the conformation that this week’s attempts to re-open discussions with the Shanghai Automotive Industry Corporation (SAIC) about a possible takeover have failed.
Letters have gone out to those who will lose their jobs, while a small number of staff will be kept on in order to “mothball” the plant.
“[SAIC] are not willing to acquire either the whole or part of the business on a going concern basis,” said Ian Powell, a partner at administrators PricewaterhouseCoopers.
He added: “Steps are now being taken to formally notify employees who will be affected.”
Tony Woodley, general secretary of the T&G, called the Chinese company’s decision not to get involved a “devastating development”.
“The one in a million chance we felt our people had has now been taken away,” he said.
“We have worked hard this week with the administrators to develop a sound business plan to present to SAIC. But it does take two to talk and that opportunity has now gone.”
TUC general secretary Brendan Barber called the development a “bitter blow” and urged the Government to continue to work towards a resolution for the workers and their families.
“This is a bitter blow for British manufacturing and desperately disappointing news for thousands of loyal Rover workers and their families,” he said.
“Everything possible must now be done to provide hope and opportunity to the blameless victims of Rover’s demise.”
The Government has given MG Rover £6.5 million to ensure the workers were paid this week, but that is unlikely to be extended into next week.
It has also set up a task force which has paid £156,000 in payouts to 26 of the company’s suppliers, who were owed money.
Prime Minister Tony Blair and chancellor Gordon Brown are in the West Midlands in a last ditch attempt to salvage something from Britain’s last mass-market car manufacturer.
