Ford condemned for 'blindsiding' staff at under threat engine plant in Wales

Ford has been condemned by MPs and unions for "blindsiding " them over its plans for its engine plant in Wales, as concerns grown  that more than 1,000 jobs could be lost there.

Unions claims that two-thirds of the staff - some 1,160 workers - could see their jobs go at the Bridgend factory when current agreements to supply engines for Ford vehicles and a contract build engines for Jaguar end over the next few years.

Local MP Madeleine Moon said she was "absolutely stunned", adding: "As far as I understood Ford were trying to find more work at Bridgend - nothing was said about job losses."

Unite union general secretary Len McCluskey said staff "have every right to feel angry over the company’s behaviour". 

“This loyal workforce and their union have been kept in the dark over recent months," he added.

Asked about the threat to the factory at Prime Minister’s Questions on Wednesday, Theresa May called Ford “an important investor”, adding that she “has had and will continue to have regular dialogue with about ways to make sure this success continues”.

There was particular concern from Carwyn Jones, First Minister of Wales, who is "actively seeking assurances” from Ford about the future of the plant, with the Welsh government having agreed to put £15m into it as part of the latest round of investment, on the proviso jobs were guaranteed.

Unite said it believed that when the Jaguar engine deal finishes, Ford will have to confirm it has "no future business plan for the plant”, with mass job cuts.

Unite said it would “defend future of Bridgend with all our might” pledging to win "legally binding guarantees to secure future production at the plant".

Concerns about Bridgend’s future were first raised in September when Ford said it was reducing planned investment in the plant - which turns out about 650,000 engines a year - from £181m to £100m.

According to reports, an internal Ford study revealed that deals to produce engines in Wales are drawing to a close, with demand for only 125,000 engines a year in the future.

The reports claim Bridgend was not performing as well as its sister plant in Dagenham, with issues including higher levels of overtime which push up costs. Winning further work for the Welsh plant was contingent on performance increasing.

The contract to supply Jaguar with about 250,000 engines a year is thought to be likely to end in 2020, as the premium car maker brings production in-house.

However, Jaguar is ramping up car production and adding new models and the company has played down suggestions it could dump Bridgend, calling Ford “an important strategic partner”.

Ford produces six and eight-cylinder engines engines for JLR, including two of the powerplants used in the new Range Rover Velar the company unveiled on Wednesday.

Ford said it had informed unions about its outlook for the Welsh plant when it revealed the smaller than expected investment to build a new family of petrol engines back in September.

A spokesman for the business said the forecast showed “healthy volumes to occupy the current workforce over the next two to three years. Beyond that, identified workload is reduced and whilst such a forecast is not unusual, given the cyclical nature of our business, it is a concern, and we understand that.”

In a statement, Ford said that for the plant to win new work, “it went without saying” that  Bridgend “would need to ensure its competitiveness, and addressing some of the current concerns relating to the plant’s efficiency would be high on the agenda… just as is the case for every plant around the world”.

In July, Ford hinted at trouble down the road for its British plants. Announcing half-year results, Bob Shanks, chief financial officer, said that Brexit was likely to deliver a $500m-a-year hit to the business until Britain's withdrawal from the trading block is complete.

The executive also warned that Ford would raise the price of its cars to “claw back” the money he expected to lose from foreign exchange movements following the EU referendum.

Fears for workers at Ford come just days after the prospect of job cuts at Vauxhall's plants in Ellesmere Port and Luton were raised.

General Motors, which owns the Vauxhall and Opel brands, is in talks about selling the loss-making marques to France's PSA Groupe, which owns Peugeot and Citroen.

Peugeot chief Carlos Tavares said he would honour existing production commitments if a sale were agreed, but refused to be drawn beyond that, and said that "swift cuts" would be needed to return the business to profit. Under current deals with GM, the Astra car is due to remain in production at Vaxuhall’s Ellesmere Port plant until 2021, while the Vivaro van, which is made in Luton, is scheduled to run there until 2025.

The Vauxhall plants are seen to be the most likely to face cuts through a combination of factors including as the French state owning 14pc of Peugeot, powerful unions in German were the bulk of GM's European staff are located, and the prospect of Brexit potentially making the UK less attractive for manufacturers. 

The deal has not been agreed yet, but union leaders have described it as "only needing the i's dotted and the t's crossed". 

There is known to be a strong drive within Peugeot and GM to get a provisional agreement over the line before the Geneva motor show starts on March 9 for fear it will overshadow the high-profile event.