Workers and management have all accepted pay cuts
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Thousands of staff will resume production at Honda's car factory in Wiltshire on Monday after a four-month shutdown at the plant. Workers at the Swindon site have agreed to a 3% pay cut for the next 10 months, while managers face a 5% drop as sales are hit by the economic downturn. Some 1,300 factory staff took voluntary redundancy, reducing numbers to 3,400. Staff received full pay for the first two months of the shutdown and around 60% for the last two months. The plant will be turning out far fewer cars this year, despite the popular Honda Jazz supermini starting production at Swindon from September. Honda had hoped to produce 228,000 vehicles at Swindon this year. But last November that figure was reduced to 175,000 when it was decided production would stop in February and March this year. In mid-January, Honda said the shutdown would last through April and May as well, and the 2009 production figure has now been set at just under 113,000. With production halted, Honda spruced up the Swindon plant, stripping and rebuilding assembly lines and redecorating throughout.
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