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Date Published: 20/10/2021
ARCHIVED - Ford reduces wages in Spain while investing millions in UK
The car manufacturer has said it is essential to cut labour costs in the Valencian factory
Like so many other companies in Spain, car manufacturing giant Ford has announced a cut in staff salaries as part of a “restructuring” move to avoid job losses at its Almussafes plant in the Community of Valencia. However, the move has left both employees and unions furious as the news comes just hours after the company invested almost 300 million euros in improvements for a British factory.
In a meeting held on Monday October 18, Ford stressed the necessity of cutting labour costs to maintain their competitiveness in the global market, a sector which has experienced dwindling sales since the onset of the coronavirus pandemic and huge delays in production due to shortages of essential parts such as semiconductors. Ford also refused to specify its long-term plan for the Valencian plant, which will be forced to switch to manufacturing zero emission vehicles by 2030.
Earlier this year, the Almussafes factory announced that it would be axing 630 jobs and reducing night shifts in an attempt to save money.
The Detroit multinational announced a new investment of 273 million euros in the Halewood plant in the United Kingdom, a factory that will begin manufacturing components for electric cars in 2024. Contrary to the feeling in Spain, spokesperson José Luis Parra commented that the move should be seen as a positive one, reaffirming Ford’s commitment to Europe.
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