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Honda staff agree 3% pay cut to save jobs

It has been revealed that workers at Honda's Swindon factory have agreed a 3% pay cut in order to save nearly 500 jobs at the plant. The deal was brokered by the Unite trade union and sees the package run until March 2010, although significantly, managers have agreed to take a 5% pay cut with all workers now entitled to an extra six days holiday a year. While the deal is still to be voted on by trade union members there is little alternative if the 490 jobs are to be saved.

It is interesting to see that the trade unions across the UK are now actively considering short-term pay cuts in order to assist business cash flow and potentially save hundreds if not thousands of employment positions. The Honda Swindon factory has been out of action for a while although production will begin next month with hopes that the agreement with Unite and the implementation of the scrappage allowance scheme should at least allow the industry a period of consolidation.

Many in the industry are pinning their hopes for the future on the scrappage allowance although opinions are mixed as to how successful it will be.

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