Britain: "We have to show that Peugeot cannot walk over its workforce"

On Thursday April 27^th the Question Time programme on BBC came from Coventry, so it was inevitable that the issue of the threatened closure of Peugeot at Ryton would be discussed. The panel of “experts” were united in their opinions that closure was inevitable, that nothing could be done, that it was the law of the market. In this last opinion they were correct – under capitalism if shareholders deem that greater profits can be made elsewhere, they will force through plant closures despite the consequences for families and communities.

As the pundits on the programme pontificated whilst expressing their obligatory sympathy for the workforce, the Peugeot workers in the audience were visibly stunned to hear the views that apparently nothing can be done to save the plant. Many of the workers believe that closure is not inevitable and today, Friday 28^th, about 100 workers from the plant demonstrated outside a major Peugeot car dealer in Holbrooks, Coventry to publicise their case, express their anger and garner support.

A joint leaflet from the T&G and Amicus points out that the plant is efficient, profitable and worth saving. The leaflet shows that Peugeot made profits last year in excess of one billion Euros and that the Ryton workforce is the most flexible in Europe and has done everything the company had asked it to do. It is also pointed out that the Peugeot group achieved record sales of 3.9million vehicles in 2005 and that the UK remains Peugeot’s third biggest market.

Quite correctly the leaflet also states that, “closing the plant at Ryton is about sacrificing UK workers to appease shareholders and increase profit by exporting jobs to Eastern Europe”. Finally the leaflet calls upon trade unions and other organisations in Coventry to support the fight back and “the trade union alternative”.

At this moment in time however the trade union alternative is not spelled out. I spoke to John Cummins, Deputy Convenor from Amicus, about the trade union plans to keep the plant open. John said:

“In the beginning people were shocked at the news and even more so when the impact on jobs, families and the community was realised. At this moment the important thing is to ensure the workers remain calm, that the rumours from management are scotched so that workers are not frightened or cowed into making irrational decisions. We have to show that Peugeot cannot walk over its workforce. Given the lack of consultation by management, we do not have information that we can use to draw up other viable options. At this moment we are gathering information and when we know more, the convenor and the national officials will be able to present options to the workers so that educated decisions can be made”.

I asked whether the issue of opening the company books had been raised and John replied that all information that is available is being looked at. I also asked whether the issue of nationalisation had been discussed and again John replied that viable options would be presented by the trade unions once enough information had been gathered and analysed.

So at this moment there are no concrete plans to be presented to the workforce, but what the trade unions believe is that it is important that confidence in an alternative is maintained.

Coincidentally, a study was published in the Guardian on Wednesday 26^th April on what had happened to the workers from Rover at Longbridge who had lost their jobs a year ago. The study found that by December 2005 more than two thirds of the ex-Rover workers had found jobs but that on average they were earning £3,523 per year less than they earned at Rover. Almost half of them believed they had worse jobs. In addition the researcher, Kathy Armstrong, said that “lower wages, lower-graded jobs and less job satisfaction may cause depression and illness among workers in the future.” She also found that while most employees are back at work, most are also much worse off. This report ties in with one in the Guardian today, Friday April 28^th, that “depression, anxiety and other forms of mental illness have taken over from unemployment as the greatest social problem in the UK.” The report states that 15% of the population suffers from depression and the economic cost in terms of lost productivity is huge – about £17 billion or 1.5% of UK GDP.

Is this the future for many of the workers from Ryton? If they and we are not successful in keeping the plant open, the future would seem to be one of low wages, falling living standards, unemployment and depression with all of the attendant social costs to deal with these problems. This is the price that is to be paid on the altar of profit, the altar of capitalism. It is no accident that the present generation is the first one since the war that sees the future as being bleaker, more uncertain, less secure than the present.

Time is running out. Plans have to be drawn up quickly to present to the workforce so that they believe they have a chance of winning and keeping the plant open. Once disbelief sets in, it will be very difficult to re galvanise support for a fight that can be won. All options have to be examined, including occupation to prevent asset stripping and nationalisation without compensation. The Ryton plant does not belong to Peugeot. It belongs to past and present workers who have created value through their labour, value that has been siphoned off to the shareholders. The workers should therefore decide what happens to their factory, the one that they have built and financed through their work.

April 28, 2006

• Britain: Make plans now to stop the closure of Peugeot, Coventry  (April 21, 2006)