Nissan imposes redundancy freeze

The Sunderland plant opened in 1986

Car maker Nissan has warned compulsory job losses may still be necessary, despite being overwhelmed with applications for voluntary redundancy.

The firm said in January it planned to axe 1,200 jobs in Sunderland - about a quarter of the total - to offset a drop in sales of more than 25%.

So many people applied for voluntary severance, that the company has now frozen new applications.

However, a spokesman said compulsory redundancies might still be necessary.

A company statement said: "Nissan Sunderland has temporarily suspended applications from staff for the voluntary redundancy package agreed by the Joint Consultation Committee at the beginning of February.

"The suspension will allow a review of existing applications to take place.

Volatile market

"In order to achieve the voluntary redundancy a significant relocation of staff is needed and the transfer of skills within the plant needs to be fully assessed.

"The response to the voluntary redundancy package from employees has been positive and it remains the committee's aim to manage the right-sizing activity at Sunderland on a voluntary basis."

The statement concluded: "The market continues to be very volatile and therefore sales forecasts are changing daily so it is still prudent to continue planning for compulsory redundancy should this be necessary within the 90-day consultation window."

The joint consultation committee is made up of Nissan management and the Unite trade union.

The Sunderland plant opened in 1986 and employs about 4,900 workers.

Union officials described the job losses as "devastating news for workers and their families".

Nissan sales for December 2008 fell 26.68% compared with the same month in 2007.