Will BMW layoff 850 workers at UK Mini plant?

BMW said on Monday that it will lay off 850 workers at its British factory which builds the Mini car to adjust to weaker demand.

The job cuts are the result of a review of operations at the factory in Cowley, near Oxford, where production will be suspended throughout this week and staff who currently work weekend shifts will be moved to weekday work, effective March 2.

BMW has 4,700 workers at Cowley, which can turn out 800 cars per day.

``While Mini has been weathering the economic downturn, it is not immune from the challenges of the current situation,'' BMW said in a statement.

``Against this backdrop the company felt that a review of its shift patterns was necessary. This decision has not been taken lightly. The plant's union representatives have, of course, been involved in the discussions.''

BMW reported earlier this month that sales of the Mini model rose 4.3 percent in 2008 to 232,425 cars. Overall, the company said sales dropped 5 percent across its product range.

In January, however, Mini sales were down 35 percent compared to January 2008. About 80 percent of the Minis built in Britain are exported.

Auto sales in Britain fell sharply at the end of the year because of the recession. Nissan has cut 1,200 jobs at its plant in Sunderland, England, while Honda has halted production at its Swindon plant for four months.

``Sacking an entire shift like this, and targeting agency workers who have no rights to redundancy pay, is blatant opportunism on BMW's part and nothing short of scandalous,'' said Tony Woodley, joint leader of the Unite union.

``BMW's parent company couldn't attempt this in Germany because it would be illegal to do so. It is a disgrace, therefore, that workers in this country can be so casually thrown to the dole.''

BMW acquired the Mini, a symbol of the swinging 1960s, when it bought the Rover car company in 1994.

Agencies