14 November 2014

JLR Workers Threaten Strike Action

It's out brothers, out. The shortsighted unions at their best

Pay deals are detailed, so let's not get too deep into that. Suffice to say an offer was made by JLR that has been rejected. In a move sure to please other premium car makers, JLR workers are threatening to strike. The reason is that profits are up and the workers deserve a cut of it as they have contributed to it. Sounds good in theory, but it is flawed.

True JLR is making money, but is plowing it all back into the company. The reason is that JLR has to play catch up with its competitors. That means expanding its model range with cars such as the XE and other new models/variants. It costs a lot to bring a new car to market, and when you don't have an existing model to help pay for it as is what happens when expanding a range, very expensive.

Starting new models requires large investment

So has the Unite union thought that JLR is building up to be a real competitor to the the big three German premium brands? That to accomplish such, all profits must be plowed back into the company to get there? I wondered how long it would take for the shortsighted unions and workers to scupper its progress. At least it lets the competition off the hook and slows the progress JLR is making.

A new JLR engine plant and range of engines doesn't come cheap either

2 comments:

Anonymous said...

RED ROBBO is coming back to destroy what is left of the British auto industry

RayCee Smith said...

It's a fine line between workers getting what they should and undermining the good that is being done by getting greedy.