Honda workers opt for pay cuts in show of solidarity

23 May 2009

Workers at the Swindon plant of auto major Honda have voted in favour of a 3-per cent pay cut for 10 months to safeguard 490 jobs. Managers will also have their pay cut by 5 per cent.

In return the workers have been offered a bonus of six additional days' leave, according to Unite, the workers' union.

The issue was put to vote following a four month closure of the plant. An overwhelming majority of 89 per cent voted in favour of a cut in wages. They were asked to take a salary reduction as an offer of voluntary redundancy was accepted by very few of the staff.

The plant which has been shut for four months due to a demand slump for new cars is due to reopen next month.

While pay freezes have almost become the norm in the car industry, pay cuts have been rarely resorted to.

According to analysts, a number of struggling companies have been imposing freezes on workers' salaries, but to get employees to accept a pay cut was something quite unusual.