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The BBC's Max Foster
"Once again, a foreign car company is scaling down production in the UK"
 real 56k

Manchester University's Professor Karel Williams
"This is not really an attractive base or place from which to make or sell motor cars"
 real 56k

Vauxhall chairman Nick Reilly
"I've not washed my hands of you even though you think I have"
 real 28k

Wednesday, 13 December, 2000, 15:10 GMT
Unions fight to save Vauxhall plant
Luton protest
Nick Reilly failed to placate workers
Union bosses have vowed to battle on in their fight to save Luton's Vauxhall car plant from closure.

Bill Morris, General Secretary of the Transport and General Workers Union, said he is ready to fly to Detroit for crisis talks with General Motors chiefs.

Mr Morris called on GM to reverse their shock decision, taken on Tuesday, to close the Vauxhall plant in Luton, at a cost of 2,000 jobs.

He said: "If General Motors have a global problem then there should be a global solution.

"It is not acceptable to pick off UK workers because they are cheap and easy to sack."

He added that UK workers had exceeded their productivity targets.

"The decision to sack 2,000 workers is a vote of no confidence in Britain and its workforce."

Bill Morris, of TGWU
Bill Morris: Talks with GM in USA

Mr Morris has written to the United Autoworkers union of America and Canada seeking support to reverse this decision.

"They know that while it is Luton today it may be Detroit tomorrow," he said.

Mr Morris claimed German employees would attempt to have this decision reversed by citing European law on information and consultation while UK workers do not have the same rights.

He urged the Government to sign up to European Directive on Information and Consultation.

Meanwhile, Trade and Industry secretary Stephen Byers was due to make an emergency Commons statement at 15.30 GMT.

Unofficial strike action

His comments came as workers at Vauxhall, Luton, took unofficial strike action on Wednesday in response to the company's decision.

The plant is due to close at the end of this week for the Christmas shut down.

Vauxhall chief executive Nick Reilly faced an angry crowd of workers who stormed the company's headquarters in Luton.

Over 200 workers chanted: "We want Reilly out, we want Reilly out."

We want this to affect the least number of people possible

Nick Reilly

Mr Reilly tried to explain why the company had decided to pull the plug on production of the Vectra.

Surrounded by a police cordon, Mr Reilly said he had done all he could to mitigate the damage and that there were still 1,000 jobs available.

General Motors said production of the Vauxhall Vectra and its replacement will switch to the continent, while some Luton workers will move to a neighbouring plant.

Workers protesting outside Vauxhall HQ
Workers walked off the shift to protest
Mr Reilly denied Vauxhall workers were being sacked because it was easier to get rid of them than continental workers.

He said that up to 5,000 jobs would have to go at the company's plants across Europe.

Mr Reilly said the company knew nothing of the leak which meant that car workers received news of the redundancies through media reports, rather than management.

Emotional reaction

A spokesman for the Amalgamated Engineering and Electrical Union said the workers' reaction was entirely expected.

"It is clearly an emotional reaction to a very difficult situation.

"People have been told they are losing their jobs, told just before Christmas and told over the radio."

The government has promised help for Luton following the announcement.

Mr Byers has described the decision, which will have a severe impact on the local economy, as "a bitter blow" for workers.

Worker outside Vauxhall
Mr Reilly faced a barrage of abuse from workers
He said his department would target "rapid response units" to the town, offering advice on retraining and special loans for people who want to set up their own businesses.

Unions have called for tough government measures to prevent similar closures after an extremely difficult year for motor manufacturing in the UK.

TUC general secretary John Monks said the government could "create a tougher climate for multi-national companies in this country" by making it harder for them to exit Britain.

The Bedfordshire plant had been regarded as one of the most secure in the UK.

Redundancy package

BBC industry correspondent Stephen Evans said General Motors in Detroit decided to close the car plant as it reorganises its worldwide operation.

The Luton jobs will go over the next 15 months, with workers offered what the company are describing as a "very reasonable" redundancy package.

The news comes during a tough year for motor manufacturing in Britain.

In addition to the end of car production at Ford's factory in Essex in 2002, with the loss of thousands of jobs, loss-making Rover also laid off thousands after it was sold by BMW.

Car firms, facing industry-wide overcapacity in Europe, have been hit by the strength of the pound against the euro when exporting UK-made cars to continental Europe.

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