Indian outsourcing to figure at British ‘summit’ on Jaguar Land Rover

By Dipankar De Sarkar, IANS,

London : British union leaders are to meet lawmakers from a key manufacturing belt Wednesday in what has been dubbed an ‘MPs’ summit’ to discuss the fate of thousands of workers facing job losses at Tata-owned Jaguar and Land Rover (JLR) factories.


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Although unions are not seeking to involve owners Tata Motors at this point in the negotiations, they will express strong reservations about reported long-term plans to outsource parts of JLR production to India and China, according to union officials.

The meeting, which comes after JLR announced plans to close down one of its factories by 2014, is expected to be attended by many of the 20 ruling Labour Party MPs representing the West Midlands and Northwest regions, the heartland of British manufacturing and a Labour votebank.

“We are concerned at JLR plans to outsource production development to India and China, and the possibility of a production facility in China, which could pose a long-term threat to JLR in the UK,” Des Quinn, Regional Industrial Organiser for Britain’s largest union Unite told IANS Tuesday.

Quinn also expressed concern about reported moves to “integrate” the JLR brandname, saying, “The Tata management assured us two years ago [before acquiring JLR] that Jaguar and Land Rover are iconic brands and that the brand names will be protected.”

Quinn described the ‘summit’ as an “information meeting”, but it assumes added political significance as it comes some six months to the next British general elections, in which the beleaguered Labour Party will be counting on votes from West Midlands workers.

“In the first half of next year, decisions will need to be taken on [JLR] investments. We will be looking for the government and MPs to support us. If they don’t, then they won’t get our support in the elections,” Quinn warned.

Wednesday’s closed-door meeting is being held amid growing resistance from unions over JLR’s new business plan, including the planned closure of either the Jaguar plant at Castle Bromwich or Land Rover at Solihull and the veneer site at Browns Lane, Coventry.

Unions have also urged JLR owners Tata to consider bringing the European version of the Nano – the world’s cheapest car – to Castle Bromwich to stave off a potential shutdown.

Quinn revealed that JLR management had “lifted” plans to make changes to employees’ pension scheme and introduce a new starter pay rates following protests from Unite.

A source close to JLR told IANS Tuesday: “JLR always had one plant too many.”

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