Workers at the GKN Automotive factory in Birmingham will begin
receiving ballot papers from today (Monday 16 August) in the
dispute over the decision by parent company GKN Melrose to close
the site next year.
The ballot for workers at the Chester Road factory, who are
members of Unite, the UK’s leading union, will close on Tuesday
31 August and if there is a yes vote strike action could begin in
mid-September.
Industry experts believes that the factory, which produces
drivelines for vehicles, is critical to the successful
electrification of the UK’s automotive industry. Melrose,
however, are intent on closing it to boost short term profits,
with the work being transferred abroad and 500 jobs lost.
Unite is also demanding answers from the government about how
much money and support GKN Melrose has received at the company’s
research and development centre in Abingdon. Unite believes that
the company has received millions of pounds in recent years.
With GKN Melrose now offshoring most of its manufacturing
capability, while the UK taxpayer will have invested heavily in
new technology, the majority of the financial benefit, which
could run to billions, will be reaped abroad.
Unite believes that if GKN Melrose is not going to employ UK
workers in the areas of manufacturing where it is developing
technology, then not only should all UK government support be
frozen, previous money received in grants should be repaid.
An alternative business plan developed by a broad coalition of
GKN workers, the factory’s senior management, Unite officials and
local politicians, including MP , and which would have ensured the factory’s viability,
was rejected out of hand by GKN Melrose in May.
GKN has also refused to meet with ministers, despite the
government making it clear it will provide significant assistance
to ensure the future of the Birmingham plant is secured.
Since 2018, GKN has been owned by venture capitalists Melrose.
Melrose’s purchase of GKN was highly controversial. In response
to fears that GKN was going to be asset stripped, it promised
shareholders and investors that it would establish a ‘UK
manufacturing powerhouse’.
Unite national officer Des Quinn said: “Members have had no
option but to ballot for strike action as GKN Melrose has shown
zero interest in seriously examining alternatives to closure.
“If strike action should occur it will swiftly cause delays and
problems throughout the UK automotive sector, which is reliant on
a just-in-time delivery system for car components.
“In 2018, when Melrose purchased GKN, it promised not to asset
strip the company but to create a UK manufacturing powerhouse.
That promise now appears entirely hollow.
“An urgent inquiry is needed into how much money GKN Melrose has
received from the government for research and development. If
that money is not going to result in investment in manufacturing
in the UK it should be paid back.
“It is morally reprehensible that UK taxpayers are being asked to
fund GKN Melrose’s research when at the same time the company is
intent on offshoring strategically vital work to Europe and
forcing 500 workers onto the dole.”
