Honda to Cut 800 Jobs in U.K.

Honda Motor Europe says it will slash 800 jobs at its U.K. car manufacturing operation because of continued low market demand in Europe.

The auto maker is entering into formal consultation with its workers about the layoffs that will take effect this spring at its Swindon plant, 80 miles (129 km) west of London.

Honda built about 150,000 Jazz, Civic and CR-V vehicles last year in Swindon with a third of that volume sold in the U.K. and the rest shipped to 26 countries.

The cutbacks mark the first job losses at Honda since it began U.K. manufacturing operations in 1992.

Unite, Britain's biggest union, calls Honda's decision a “hammer blow” to U.K. manufacturing and the local economy. It says the auto maker really is cutting more than 1,100 jobs, as it recently announced plans to eliminate 325 temporary worker positions at the Swindon site.

But Honda Motor Europe Executive Vice President Ken Keir insists the auto maker remains fully committed for the long-term to its U.K. and European manufacturing operations.

“However, these conditions of sustained low industry demand require us to take difficult decisions,” he says in a statement. “We are setting the business constitution at the right level to ensure long-term stability and security.”

Unite says it will oppose any compulsory layoffs and has demanded Honda negotiate to minimize the impact of the cuts and to save jobs.

The union says Honda is cutting 420 managers and supervisors and 360 production workers.

“The reality is that over 1,000 jobs are going at Honda – it’s a disaster for manufacturing in the U.K. and for the local economy,” Unite national officer Tony Murphy says in a statement. “It's a tragedy for our members and their families.

“There's no doubt these cuts will have a significant knock-on impact on the supply chain, and on local shops and services.”