Jaguar Land Rover Considering Turkey, Austria For New Factory
Amid a pay dispute between itself and the U.K. trade unions, Jaguar Land Rover is considering Turkey and Austria over North America for a new factory.
The Birmingham Post reports plans to locate a factory in North America, and particularly in the United States, were switched to the aforementioned countries due to the negotiations between the automaker and JLR Unite over the autumn of 2014. The talks led to a two-year pay deal, but not before workers threatened industrial action amid accusations by the union of JLR planning to cut £240 million ($370 million USD) from pensions to pay for the deal.
Per a inside source, the automaker is looking at locales where costs are much lower than in the United Kingdom, “and where there is not the same union influence” on the factory floor compared to that in its British factories. The insider adds that Continental Europe is more likely at this point in time, but that nothing was in place thus far.
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The unions did have a very significant (and I shall add positive) impact on labor conditions during the first third of the 20th century. The problem with unions, was that once they achieved that, they would not stop there. To appease their base, and prove that union dues they paid would give them something back, they started asking for more and more...until they almost killed the goose that lays the golden eggs. This problem is not unique to the UAW or the United States, or as in the case of this article, the UK. It has happened all across the world.
I love how the UK is very content to trade unionize itself out of producing anything, and especially cars. Have the years 1965-1990 taught you nothing?
But first JLR will have to deal with all those recalled airbags.
Most of your made in germany cars are probably assembled by Turkish labor anyway, why not pay Turkish Turks directly?