December 3rd 1974
The Triumph Spitfire 1500 is announced.
December 5th 1974
The Triumph dispute rumbles on and on
By R. W. Shakespeare
Nearly 10,000 workers are idle because of labour disputes in the Midlands vehicle industry, Any hopes of early settlement receded yesterday as militant action was renewed. The biggest problems centre on British Leyland's Triumph car operations in Coventry where a mass meeting of workers yesterday voted for continuing a strike by 1,000 assembly track workers and the decision by other workers that they will not cross picket lines. In all, 8,000 other workers in Rover-Triumph plants in Coventry, Liverpool and Birmingham are idle because of the stoppage by the assembly track men, now going into its second week. They are demanding payment for time lost during a two-week strike by white collar control room staff in the Coventry assembly plant
Mr Eddie McGarry, chairman of the Rover-Triumph joint shop stewards' committee, claimed yesterday the company had been offered an
" honourable compromise "
over the lay-off question. This, it is understood, would have put a strict time limit on the period for which the company would be required to make lay-off payments in any single dispute. However, British Leyland appears to be refusing to budge on the long-established principle of not making lay-off payments to men who are made idle by disputes within their own plant.
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by nicholls1966uk on Mon Aug 25, 2008 4:28 pm
Last edited by nicholls1966uk on Sat Oct 25, 2008 2:33 pm, edited 1 time in total.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 4:33 pm
December 6th 1974
Statement in House on British Leyland
By Our Business News Staff
A statement on Britsh Leyland is expected in the Commons today, according to the Press Association political correspondent.
Last night a Department of Industry spokesman said that he could not comment but advised inquirers to keep in touch with the department today. Lord Stokes, chairman of British Leyland, and leading company officials have, been having regular discussions with the Government for several months. Both sides have often stressed that the talks were informal and designed mainly for exchanges of information. However, as one Leyland official remarked last night, in view of Mr Healey's Budget remarks it could be taken as read that recent discussions would have touched on the topic of nationalization.
"£50m aid ":
Mr Wedgwood Bean, Secretary of State for Industry, is expected to tell the House of a call by British Leyland for £50m in government aid to avoid heavy redundancies, protect its investment programme and ensure its survival the Press Association reports.
In October, Mr Alex Park, the company's finance director, said British Leyland needed to find another £70m in working capital.
THE GUARDIAN
CAR STRIKE 'A CATASTROPHE'
By Geoffrey Whitely
Strikers at the heart of the disputes which have stopped all output at the Triumph car plant in Coventry were warned yesterday that continuation of the stoppage could only add to the depression of the industry. All four major manufacturers have been forced to launch cost-cutting operations. The warning came from Mr Richard Perry, deputy managing director of the Rover-Triumph division of British Leyland, as production losses because of labour troubles at the Coventry plant approached £16 millions. Mr Perry described the effects as " catastrophic." .
There has been no production at the factory for four weeks, firstly because of a striike over a pay dispute by a group of key white collar workers, and now because of a walk-out by 1,000 assembly workers. More than eight thousand other workers are idle in Coventry. Birmingham, and Liverpool. Mr Perry said :
" In the present economic climate, it is well known that motor manufacturers in America, Europe, and Britain are suffering, and that lost sales at this time only jeopardise the security of employment."
In normal times, he said, the Rover-Triumph division expected to capture about 8 per cent of the home car market. But with British sales depressed, the company was more dependent than ever on selling sports cars in America. Serious interference with production meant that confidence in the company's ability to deliver on time was being undermined. It could result in lost orders. The management is unwilling to concede the demands of the 1,000 strikers who want an improved agreement on lay-off pay when they are unable to work because of disputes. The strike, which one trade union official has described as " a war of attrition and likely to last indefinitely," shows every, sign of becoming a major battle of principle. It could settle for good the question of lay-off pay for the 170,000 workers in British Leyland plants.
Existing agreements mean that employees unable to work cannot receive lay-off pay if the strike is in their own factory. Assembly workers at Triumph have protested that other people's strikes have reduced their earnings over the past year from what should have been an average of £55 a week to between £36 and £38. They have suggested that the agreement which disqualifies them from lay-off pay should not apply when the strike involves white-collar workers, as did the recent two-week dispute at Triumph. But the management, aware that any gains by employees would prompt immediate demands for similar treatment throughout British Leyland, said it was not prepared to change what it considers a highly important agreement. Mr Perry said the management had reached the limit of what it could offer. To meet demands in full, it is thought, would cost about £400,000 a week in the Coventry plant alone.
Statement in House on British Leyland
By Our Business News Staff
A statement on Britsh Leyland is expected in the Commons today, according to the Press Association political correspondent.
Last night a Department of Industry spokesman said that he could not comment but advised inquirers to keep in touch with the department today. Lord Stokes, chairman of British Leyland, and leading company officials have, been having regular discussions with the Government for several months. Both sides have often stressed that the talks were informal and designed mainly for exchanges of information. However, as one Leyland official remarked last night, in view of Mr Healey's Budget remarks it could be taken as read that recent discussions would have touched on the topic of nationalization.
"£50m aid ":
Mr Wedgwood Bean, Secretary of State for Industry, is expected to tell the House of a call by British Leyland for £50m in government aid to avoid heavy redundancies, protect its investment programme and ensure its survival the Press Association reports.
In October, Mr Alex Park, the company's finance director, said British Leyland needed to find another £70m in working capital.
THE GUARDIAN
CAR STRIKE 'A CATASTROPHE'
By Geoffrey Whitely
Strikers at the heart of the disputes which have stopped all output at the Triumph car plant in Coventry were warned yesterday that continuation of the stoppage could only add to the depression of the industry. All four major manufacturers have been forced to launch cost-cutting operations. The warning came from Mr Richard Perry, deputy managing director of the Rover-Triumph division of British Leyland, as production losses because of labour troubles at the Coventry plant approached £16 millions. Mr Perry described the effects as " catastrophic." .
There has been no production at the factory for four weeks, firstly because of a striike over a pay dispute by a group of key white collar workers, and now because of a walk-out by 1,000 assembly workers. More than eight thousand other workers are idle in Coventry. Birmingham, and Liverpool. Mr Perry said :
" In the present economic climate, it is well known that motor manufacturers in America, Europe, and Britain are suffering, and that lost sales at this time only jeopardise the security of employment."
In normal times, he said, the Rover-Triumph division expected to capture about 8 per cent of the home car market. But with British sales depressed, the company was more dependent than ever on selling sports cars in America. Serious interference with production meant that confidence in the company's ability to deliver on time was being undermined. It could result in lost orders. The management is unwilling to concede the demands of the 1,000 strikers who want an improved agreement on lay-off pay when they are unable to work because of disputes. The strike, which one trade union official has described as " a war of attrition and likely to last indefinitely," shows every, sign of becoming a major battle of principle. It could settle for good the question of lay-off pay for the 170,000 workers in British Leyland plants.
Existing agreements mean that employees unable to work cannot receive lay-off pay if the strike is in their own factory. Assembly workers at Triumph have protested that other people's strikes have reduced their earnings over the past year from what should have been an average of £55 a week to between £36 and £38. They have suggested that the agreement which disqualifies them from lay-off pay should not apply when the strike involves white-collar workers, as did the recent two-week dispute at Triumph. But the management, aware that any gains by employees would prompt immediate demands for similar treatment throughout British Leyland, said it was not prepared to change what it considers a highly important agreement. Mr Perry said the management had reached the limit of what it could offer. To meet demands in full, it is thought, would cost about £400,000 a week in the Coventry plant alone.
Last edited by nicholls1966uk on Tue Feb 23, 2010 9:12 pm, edited 7 times in total.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 4:46 pm
COLLAPSE OF A DREAM
Government to take big holding in British Leyland as price of mounting cash rescue operation
December 7th 1974
By Michael Hatfield Political Staff
The Government is to take an important shareholding in British Leyland, the country's biggest exporter and biggest car manufacturer. Although the company's difficulties were well known, the timing of the announcement in the Commons yesterday by Mr Wedgwood Benn, Secretary of State for Industry, took MPs by surprise. Not many were present when he made his statement. He would not indicate the proposed size of the state share in the company, but there was a widespread suspicion among politicians that the Government has in mind a majority shareholding. Mr Benn said in his statement
"In response to the company's request for support for their investment programme, the Government also intend to introduce longer term arrangements, including a measure of public ownership."
When questioned, he said that until the team led by Sir Don Ryder, which is to inquire into the state of the company, revealed how much support was needed, the extent of public participation would not become apparent. In reply to another question, he said:
"If the Government are required to put substantial sums of money into British Leyland in view of its importance to our national economy, it is quite right that the taxpayer in making that contribution should get with it an appropriate measure of public control and accountability. "I do not see why the taxpayer should be put at any special advantage vis-a-vis any other investor, given that other investors when they put their money in automatically expect they will get an appropriate measure of control."
" Discussions have been taking place with the company regarding both its short term requirements for working capital and its long-term investment programme. " Because of the company's position in the economy as a leading exporter and of its importance to employment, both directly and through the many firms that are dependent on it, the Government are informing the company's bankers that the approval of Parliament will be sought for a guarantee of the working capital required over and above existing facilities. I am satisfied that this will enable the company's requirements to continue to be met without interruption. " In response to the company's request for support for their investment programme, the Government also intend to introduce longer term arrangements, including a measure of public ownership. In order to help the Government in framing a scheme for this purpose, it is proposed to appoint a high-level team, led by Sir Don Ryder, including members drawn from the IDAB (the Department of Industry's industrial advisory board), to advise on the company's situation and prospects, and the team will consult the company and the trade unions "A further statement about the arrangements for the inquiry team will be made shortly and I will also put before the House the proposed guarantee to the banks for their approval."
Replying to Mr Heseltine, Opposition spokesman on industry, Mr Benn said that on the amount of the guarantee it would be sensible for MPs to await the study to be undertaken by the inquiry team.
£16 a week call: More than 4,000 production workers at British Leyland's car assembly plant at Cowley voted overwhelmingly yesterday to seek a £16 a week pay rise. They want their hourly rate raised by 40p to £1.68p, which will give them more than £67 a week,
DAILY EXPRESS
Leyland Men Seek £16 rise
ON THE DAY British Leyland's cash- crisis came to a head, 4,000 workers at the firm's Cowley plant demanded a £16-a-week rise. T h e claim—which would give them £67 a week- even outstripped the recomendations of their shop stewards. And Leyland's cash crisis was not even discussed at yesterdays meeting.
One man who supported
the claim said afterwards :
"If the Government are going to subsidise the firm,our money can come out of that."
But another worker said :
" This claim is out of all proportion. But there are too many militants among us to
allow us to back down. They see this as a means of forcing the Government to take over British Leyland completely."'
And there was more militancy from the picket line at the firm's Triumph factory in Coventry, closed for two weeks by a strike. Said finisher Bill Holder :
" I would sooner see the firm go under and the Government take over than the men give in. It's a fight to the finish."
Not one car has come off the Triumph assembly lines since November 8. First the clerks in the control room went on strike. Then 1,000 track workers walked out—they demanded to, be paid for the time lost in lay - offs because of the clerks' strike.
This second strike has been the more damaging. Described as a catastrophe for the firm and for Britain, it has grounded Leyland's latest export winner-the Triumph Spitfire 1500 two-seater sports unveiled only this week;
and it has laid off thousands more workers in Coventry and Liverpool.
A senior company official warned the men yesterday that lost sales might mean fewer jobs.
DAILY EXPRESS
BENN IN THE DRIVERS SEAT
By Daniel McGeachie, David Buchan
LORD STOKES flew abroad on another selling trip yesterday amid speculation about his future as head of British Leyland, the motor giant now asking for Government rescue. That rescue, involves an immediate cash loan from Industry Secretary Mr, Wedgwood Benn — and opens the back door for his nationalisation plans in key industries. At Westminster last night it was believed that Mr Benn will demand a change of management. Sixty-year-old Lord Stokes might be offered early
retirement with Mr John Barber, his No.2, moving up to chairman—though no one, doubted that Mr Benn would be the real driver, back seat or front.
As Lord, Stokes—"I. have, noticing to say"—flew off in a bid-to clinch a £300 million deal for an assembly plant in Egypt 55 year oId Mr Barber was left to say:
"We have no plans for large-scale redundancies or plant closures unless the position
deteriorates."
How much money does he want ? Mr Barber, like Mr Benn, would not say. But it is believed that the figure
in negotiations will be over £70 million—which in fact could buy out the company nearly twice over, on the
stock market at the moment. That £70 million would cover just raw materials, bought-in components, and part-finished
cars. It would need at least as much, again to cover outgoings on a-day-to-day basis, wages, for example run a £1 million plus a day in Britain alone. The stock market reflected this cash crisis yesterday.
Shares of British Leyland —our biggest; exporter at £424 million last, year-dropped-to a
nominal-6.3p, valueing the whole
group at £37 million compared with £134 million earlier this
year.
And Sir Don Ryder scarcely had time, to clear his desk at
Reed International before hid first task as the Government's new Industrial Adviser, landed in his lap.
" I have," he said,
" a lot of reading to do." '
On a plate
Tory M.P's- did not need to read beyond the figures. They were filled with gloom about British Leyland's plight. They felt the company had been handed to Mr Benn on a plate. But in the circumstances,they could not protest, for it was generally agreed that the Government had to act.
Opposition spokesman Mr Michael Heseltine said last
night:
" The problem is that once you have the Government involved in a company it becomes regarded as a bottomless
purse and there is less incentive to solve the problems."
And Mr. Eldon Grifflths, another Tory industry spokesman,
said:
" With Leyland shares at their present stock market level the Government could become the biggest single shareholders, with Mr Benn's nominees sitting in the board room. When you think of the record of other nationalised Industries, it's a
pretty dismal prospect."
Mr. Griffiths added :
" There is something nauseating about Mr Benn riding to the rescue of a firm that his own Government
has brought to its knees. There can be no question of letting British Leyland go to the wall, but before nationalising, it wholly or partly Mr Benn should take two steps : Let him persuade the unions to call a halt to suicidal strikes, and let him persuade the Chancellor to relieve the firm—and others—of penal taxation imposed for doctrinal reasons."
But whatever they say about Mr Benn and Labour's Left wing nationalisers, many Tories believe British Leyland has not been well managed. If Mr Benn goes the whole way, how would he run it ? It could be the blue-print for future State interventionin industry as promised in Labour's election manifesto.That would- involve "worker participation," with supervisory boards including union, representatives vetting the decisions of the ordinary directors.
'The British Leyland crisis may have come too soon for such an untested plan to be tried. But it seems certain that the Government would in any case nominate some union representatives to the board. Mr Eddie McGarry, joint chairman of the shop stewards' committee representing all the group's plants,
said :
" We'll insist on direct representation on the board,"
In Parliament Labour backbenchers
cheered Mr Benn's rescue operation—which would provide overdrafts and a cash iniection — and were really
elated -at this chance of massive State intervention.
'What the Industrial Adviser and the future National Enterprise Board are all about, they pointed out, is giving a helping
hand to vital " lame ducks. If Mr Benn was as pleased as his backbenchers he did not show it. He explained
that in a straight exchange for investment help there would be a measure of State control. Tory anger mounted as he
refused to name a price until Sir Don Ryder has reported. If public money is put into private industry, said Mr
Benn, then
" it is right that that should be reflected in the degree of public participation."
In what some Tories
regarded as a sinister note the Minister said that only when the report came in would the extent of that " participation " be apparent. And he told a complaining Opposition that it was their legislation he was using anyway—"wisely " this time.
Government to take big holding in British Leyland as price of mounting cash rescue operation
December 7th 1974
By Michael Hatfield Political Staff
The Government is to take an important shareholding in British Leyland, the country's biggest exporter and biggest car manufacturer. Although the company's difficulties were well known, the timing of the announcement in the Commons yesterday by Mr Wedgwood Benn, Secretary of State for Industry, took MPs by surprise. Not many were present when he made his statement. He would not indicate the proposed size of the state share in the company, but there was a widespread suspicion among politicians that the Government has in mind a majority shareholding. Mr Benn said in his statement
"In response to the company's request for support for their investment programme, the Government also intend to introduce longer term arrangements, including a measure of public ownership."
When questioned, he said that until the team led by Sir Don Ryder, which is to inquire into the state of the company, revealed how much support was needed, the extent of public participation would not become apparent. In reply to another question, he said:
"If the Government are required to put substantial sums of money into British Leyland in view of its importance to our national economy, it is quite right that the taxpayer in making that contribution should get with it an appropriate measure of public control and accountability. "I do not see why the taxpayer should be put at any special advantage vis-a-vis any other investor, given that other investors when they put their money in automatically expect they will get an appropriate measure of control."
" Discussions have been taking place with the company regarding both its short term requirements for working capital and its long-term investment programme. " Because of the company's position in the economy as a leading exporter and of its importance to employment, both directly and through the many firms that are dependent on it, the Government are informing the company's bankers that the approval of Parliament will be sought for a guarantee of the working capital required over and above existing facilities. I am satisfied that this will enable the company's requirements to continue to be met without interruption. " In response to the company's request for support for their investment programme, the Government also intend to introduce longer term arrangements, including a measure of public ownership. In order to help the Government in framing a scheme for this purpose, it is proposed to appoint a high-level team, led by Sir Don Ryder, including members drawn from the IDAB (the Department of Industry's industrial advisory board), to advise on the company's situation and prospects, and the team will consult the company and the trade unions "A further statement about the arrangements for the inquiry team will be made shortly and I will also put before the House the proposed guarantee to the banks for their approval."
Replying to Mr Heseltine, Opposition spokesman on industry, Mr Benn said that on the amount of the guarantee it would be sensible for MPs to await the study to be undertaken by the inquiry team.
£16 a week call: More than 4,000 production workers at British Leyland's car assembly plant at Cowley voted overwhelmingly yesterday to seek a £16 a week pay rise. They want their hourly rate raised by 40p to £1.68p, which will give them more than £67 a week,
DAILY EXPRESS
Leyland Men Seek £16 rise
ON THE DAY British Leyland's cash- crisis came to a head, 4,000 workers at the firm's Cowley plant demanded a £16-a-week rise. T h e claim—which would give them £67 a week- even outstripped the recomendations of their shop stewards. And Leyland's cash crisis was not even discussed at yesterdays meeting.
One man who supported
the claim said afterwards :
"If the Government are going to subsidise the firm,our money can come out of that."
But another worker said :
" This claim is out of all proportion. But there are too many militants among us to
allow us to back down. They see this as a means of forcing the Government to take over British Leyland completely."'
And there was more militancy from the picket line at the firm's Triumph factory in Coventry, closed for two weeks by a strike. Said finisher Bill Holder :
" I would sooner see the firm go under and the Government take over than the men give in. It's a fight to the finish."
Not one car has come off the Triumph assembly lines since November 8. First the clerks in the control room went on strike. Then 1,000 track workers walked out—they demanded to, be paid for the time lost in lay - offs because of the clerks' strike.
This second strike has been the more damaging. Described as a catastrophe for the firm and for Britain, it has grounded Leyland's latest export winner-the Triumph Spitfire 1500 two-seater sports unveiled only this week;
and it has laid off thousands more workers in Coventry and Liverpool.
A senior company official warned the men yesterday that lost sales might mean fewer jobs.
DAILY EXPRESS
BENN IN THE DRIVERS SEAT
By Daniel McGeachie, David Buchan
LORD STOKES flew abroad on another selling trip yesterday amid speculation about his future as head of British Leyland, the motor giant now asking for Government rescue. That rescue, involves an immediate cash loan from Industry Secretary Mr, Wedgwood Benn — and opens the back door for his nationalisation plans in key industries. At Westminster last night it was believed that Mr Benn will demand a change of management. Sixty-year-old Lord Stokes might be offered early
retirement with Mr John Barber, his No.2, moving up to chairman—though no one, doubted that Mr Benn would be the real driver, back seat or front.
As Lord, Stokes—"I. have, noticing to say"—flew off in a bid-to clinch a £300 million deal for an assembly plant in Egypt 55 year oId Mr Barber was left to say:
"We have no plans for large-scale redundancies or plant closures unless the position
deteriorates."
How much money does he want ? Mr Barber, like Mr Benn, would not say. But it is believed that the figure
in negotiations will be over £70 million—which in fact could buy out the company nearly twice over, on the
stock market at the moment. That £70 million would cover just raw materials, bought-in components, and part-finished
cars. It would need at least as much, again to cover outgoings on a-day-to-day basis, wages, for example run a £1 million plus a day in Britain alone. The stock market reflected this cash crisis yesterday.
Shares of British Leyland —our biggest; exporter at £424 million last, year-dropped-to a
nominal-6.3p, valueing the whole
group at £37 million compared with £134 million earlier this
year.
And Sir Don Ryder scarcely had time, to clear his desk at
Reed International before hid first task as the Government's new Industrial Adviser, landed in his lap.
" I have," he said,
" a lot of reading to do." '
On a plate
Tory M.P's- did not need to read beyond the figures. They were filled with gloom about British Leyland's plight. They felt the company had been handed to Mr Benn on a plate. But in the circumstances,they could not protest, for it was generally agreed that the Government had to act.
Opposition spokesman Mr Michael Heseltine said last
night:
" The problem is that once you have the Government involved in a company it becomes regarded as a bottomless
purse and there is less incentive to solve the problems."
And Mr. Eldon Grifflths, another Tory industry spokesman,
said:
" With Leyland shares at their present stock market level the Government could become the biggest single shareholders, with Mr Benn's nominees sitting in the board room. When you think of the record of other nationalised Industries, it's a
pretty dismal prospect."
Mr. Griffiths added :
" There is something nauseating about Mr Benn riding to the rescue of a firm that his own Government
has brought to its knees. There can be no question of letting British Leyland go to the wall, but before nationalising, it wholly or partly Mr Benn should take two steps : Let him persuade the unions to call a halt to suicidal strikes, and let him persuade the Chancellor to relieve the firm—and others—of penal taxation imposed for doctrinal reasons."
But whatever they say about Mr Benn and Labour's Left wing nationalisers, many Tories believe British Leyland has not been well managed. If Mr Benn goes the whole way, how would he run it ? It could be the blue-print for future State interventionin industry as promised in Labour's election manifesto.That would- involve "worker participation," with supervisory boards including union, representatives vetting the decisions of the ordinary directors.
'The British Leyland crisis may have come too soon for such an untested plan to be tried. But it seems certain that the Government would in any case nominate some union representatives to the board. Mr Eddie McGarry, joint chairman of the shop stewards' committee representing all the group's plants,
said :
" We'll insist on direct representation on the board,"
In Parliament Labour backbenchers
cheered Mr Benn's rescue operation—which would provide overdrafts and a cash iniection — and were really
elated -at this chance of massive State intervention.
'What the Industrial Adviser and the future National Enterprise Board are all about, they pointed out, is giving a helping
hand to vital " lame ducks. If Mr Benn was as pleased as his backbenchers he did not show it. He explained
that in a straight exchange for investment help there would be a measure of State control. Tory anger mounted as he
refused to name a price until Sir Don Ryder has reported. If public money is put into private industry, said Mr
Benn, then
" it is right that that should be reflected in the degree of public participation."
In what some Tories
regarded as a sinister note the Minister said that only when the report came in would the extent of that " participation " be apparent. And he told a complaining Opposition that it was their legislation he was using anyway—"wisely " this time.
Last edited by nicholls1966uk on Wed Nov 11, 2009 1:00 am, edited 5 times in total.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 4:53 pm
December 7th 1974
Ministers likely: to face call for worker directors at Leyland
Bv R. W. Shakespeare
Prospects of government intervention in British Leyland are generally welcomed by the car unions, which throughout this year have been increasingly worried by employment prospects. Since January BLMC's. shop-floor labour force has been reduced by about 10,000 through "natural wastage". It is clear that the issue of worker participation will be one that is strongly pressed on the Government from trade union quarters. Last night Mr Bob Crook, district secretary of the Amalgamated Union of Engineering Workers at Preston and responsible for the area in which British Leyland's five bus and truck factories operate stressed this point. Mr Crook, who is also district secretary of the Confederation of Shipbuilding and Engineering Unions said:
"We believe that a capital injection is necessary, but I would hope that if the Government is going to inject some money, then there should be some public control of the situation. By that I think that worker participation in that control would be part of the deal."
Any misgivings that there were about yesterday's announcement seemed to be based on a fear that the Government might not be ready to go far enough in its plans for a public stake in British Leyland. Mr Eddie McGarry of the Transport and General Workers' Union, convener at Rover Triumph and chairman of the British Leyland joint shop stewards combine, possibly the most powerful shopfloor organization in British industry, said that if the public was going to have a financial stake in British Leyland there must not only be public accountability, but
" practical trade union repre-sentation on the board ".
This did not mean just a token representation, perhaps through a single appointment, but full participation in decision-making. He said that with such union representation many disputes, like the present one on lay-off pay which has made Triumph workers idle, would not happen. He was delighted with the move towards state participation.
"It is in line with our policy and with Labour Party policies for saving and creating jobs ", he said.
State participation in the motor industry, and full-scale nationalization in due course, would certainly be in line with the declared policies of the TGWU's automotive group and the AUEW, the two main car unions. A state takeover of car plants and leading components suppliers has also been a part of the "plan for engineering" made by the Confederation of Shipbuilding and Engineering Unions
As news of British Leyland's financial troubles broke yesterday, more workers were being laid off at the corporation's Triumph plants because of the strike by 1,000 assembly workers in Coventry. In all, more than 11,000 workers are now idle, including 8,000 in Coventry, 2,700 in Liverpool and 450 in Birmingham. The assembly track men are demanding payment for time lost when laid off because of a two-week stoppage by white- collar control room staff at the Coventry factory.
Ministers likely: to face call for worker directors at Leyland
Bv R. W. Shakespeare
Prospects of government intervention in British Leyland are generally welcomed by the car unions, which throughout this year have been increasingly worried by employment prospects. Since January BLMC's. shop-floor labour force has been reduced by about 10,000 through "natural wastage". It is clear that the issue of worker participation will be one that is strongly pressed on the Government from trade union quarters. Last night Mr Bob Crook, district secretary of the Amalgamated Union of Engineering Workers at Preston and responsible for the area in which British Leyland's five bus and truck factories operate stressed this point. Mr Crook, who is also district secretary of the Confederation of Shipbuilding and Engineering Unions said:
"We believe that a capital injection is necessary, but I would hope that if the Government is going to inject some money, then there should be some public control of the situation. By that I think that worker participation in that control would be part of the deal."
Any misgivings that there were about yesterday's announcement seemed to be based on a fear that the Government might not be ready to go far enough in its plans for a public stake in British Leyland. Mr Eddie McGarry of the Transport and General Workers' Union, convener at Rover Triumph and chairman of the British Leyland joint shop stewards combine, possibly the most powerful shopfloor organization in British industry, said that if the public was going to have a financial stake in British Leyland there must not only be public accountability, but
" practical trade union repre-sentation on the board ".
This did not mean just a token representation, perhaps through a single appointment, but full participation in decision-making. He said that with such union representation many disputes, like the present one on lay-off pay which has made Triumph workers idle, would not happen. He was delighted with the move towards state participation.
"It is in line with our policy and with Labour Party policies for saving and creating jobs ", he said.
State participation in the motor industry, and full-scale nationalization in due course, would certainly be in line with the declared policies of the TGWU's automotive group and the AUEW, the two main car unions. A state takeover of car plants and leading components suppliers has also been a part of the "plan for engineering" made by the Confederation of Shipbuilding and Engineering Unions
As news of British Leyland's financial troubles broke yesterday, more workers were being laid off at the corporation's Triumph plants because of the strike by 1,000 assembly workers in Coventry. In all, more than 11,000 workers are now idle, including 8,000 in Coventry, 2,700 in Liverpool and 450 in Birmingham. The assembly track men are demanding payment for time lost when laid off because of a two-week stoppage by white- collar control room staff at the Coventry factory.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 5:17 pm
December 7th 1974
Bankers are asked to give car group immediate financial aid
By Maurice Corina Industrial Editor
A consortium of bankers comprising Barclays, Lloyds, Midland, National Westminster and First National City is being asked by the Government to provide big additional sums of working capital to British Leyland under a Treasury guarantee. The amount is still the subject of urgent negotiation between the Department of Industry, the Bank of England and the company's financial advisers. The guarantee is intended to buy time while an inquiry team, led by Sir Don Ryder, prepares. a report for Mr Wedgwood Benn, Secretary of State for Industry, on what further financial support may be required to safeguard the company's longer term investment. The findings will be crucial in determining the size of the state shareholding, which is to be a condition of assistance under the Industry Act. Mr Benn will announce soon the names of the other members of the inquiry team; they are to include some members of the departments industrial advisory board, which is headed by Mr Robert Clark, a merchant banker, and includes Sir Raymond Brookes and Mr Adrian Cadbury. Whitehall sources suggested yesterday that up to £100m of special support may be required, but half of that could form a short term borrowing facility over and above present City funds.
Lord Stokes, the chairman of British Leyland, declined to make any comment yesterday before leaving for Cairo, where negotiations are taking place on the possibility of building an assembly plant to serve Arab markets. But Mr John Barber, executive deputy chairman and managing director, moved quickly to reassure the group's 175,000 employees, distributors, shareholders and customers by describing some reports of the present difficulties as "far too alarmist ". Britain's biggest exporter, he said, had made no secret of its long-term capital investment needs and would welcome a satisfactory outcome of discussions taking place with the Government. Shareholders would be consulted at the appropriate time.
" It is true that, like most other industrial companies in the United Kingdom, we are suffering from the effects of inflation and additionally, as a motor company, we are facing lower markets in the immediate future ",
he said.
" Inevitably this means that money is tight. But we anticipated the position way back in January and have been taking action to conserve cash all this year. For example, by restricting hiring we have reduced manpower by 10,000 people, largely by wastage."
Mr Barber added that the external economic position was not improving. The economy campaign had been intensified.
"We have no plans for large scale redundancies or plant closures unless the position deteriorates ",
he said.
"We do not have excess stocks. In fact, we have no stock of finished vehicles other than those normally awaiting dispatch, and some cars are held up temporarily by the Triumph strike. Our distributors and dealers generally have adequate stocks of most of our models. "
"Today's announcement makes no immediate difference to the day-to-day operation of the corporation. Whatever money might become available, we shall not be relaxing pressure on costs to ensure that we are competitive in world markets."
There were soothing words, too, from Sir Don Ryder, the newly appointed Cabinet adviser on industry and expected to be first chairman of the proposed National Enterprise Board. It was vital, he said, that Britain's biggest exporter be sustained. The world car market was having a difficult time, but that was not a permanent state of affairs. He was infuriated by people speaking of industrial doom. It was unthinkable that Britain would just go to sleep and fall off the edge of the cliff. Nevertheless, Mr Benn and the inquiry team will have a hard time sorting out British Leyland's requirements and maintaining confidence in the present management. There is evidence that the Government was caught wrong-footed on Thursday (a long-standing appointment for an interview I arranged with Mr Benn for yesterday morning was cancelled the previous evening). For some time British Leyland and the Department of Industry have been holding regular meetings to review the company's continuing difficulties. But all suggestions of special aid have drawn bitter denials. Only recently Lord Stokes dismissed such talk as " foolish chatter ", but the City took more notice when the financial director, Mr Alec Park, said that up to £70m was needed to safe-guard future investment plans.
Earlier this year British Leyland decided to stretch out its £500m capital programme over seven years instead of the original five. Trade union leaders have been co-operating in a programme of the utmost economy although labour troubles have continued. The group, which made a loss in the first half of the present financial year of £16.6m was badly affected by the three-day week. Now the worsening prospect for car sales, affecting all world manufacturers, have made necessary a fresh look at financial resources, and the falling ratio of self-financing to borrowings.
There are difficulties in overseas operations, such as in South Africa and Australia. A Spanish plant was sold recently to General Motors. Since British Leyland was formed in 1968 with a Labour Government's guiding hand and some help from the former Industrial Reorganization Corporation, the group has sold about £7,000m of vehicles, about half overseas. The heavy fixed costs of motor manufacturing require certain minimum levels of output at the 59 factories in Britain. Mr Benn's inquiry team will need to pay close attention to a deteriorating marketing situation in establishing cash requirements for next year and beyond. There is a close relationship between home production and export pricing, and the top management may favour some import restrictions if sales drop badly and stocks begin to rise. Over the past year several senior managers have left British Leyland and there were some important departures from the board room before the elevation last autumn of Mr Barber to deputy chairman. Although they are not saying it publicly, many ministers believe that British Leyland must come under majority state control and have its financing put on a more assured base. Mr Benn will outline the terms of his Industry Act soon, with provisions for state equity holdings and the early establishment of the National Enterprise Board to manage such holdings.
For his part, Mr Barber is not opposed to a state shareholding. He told The Times in July:
"I do not object in principle so long as it does not involve us in interference and does not prejudice our ability to provide employment, make motor cars, and compete effectively with the Europeans and Japanese."
British Leyland is due to reveal its latest financial position on December 18, when the full financial year's results will be given. An overall loss is expected, in spite of a modest surplus in the second half to the end of October. The corporation has lost more than £70m of production through strikes this year. The Government has apparently been told that one immediate investment which needs safeguarding is the £60m scheme for a new factory for Rover-Triumph, which is seen as a bigger contributor to profits. It is the first important plant to be built since the group was put together by merging Leyland Motors with the British Motor Corporation which includes the Austin and Morris divisions. Several new models are due to be introduced next year, demanding heavy promotional spending as well as the necessary expensive stockbuilding. Co-operation with the Government is nothing new to British Leyland, which received some years ago £10m in loans to finance machine tool purchases. It is also involved in the joint venture at Workington, Cumbria, producing the Leyland- National bus in collaboration with the nationalized National Bus Company.
Nationalization uncertain: Sir Don, interviewed yesterday on the BBC 2 Newsday programme said, of Mr Benn's reference to a measure of nationalization that he did not think it meant that British Leyland would be fully nationalized.
"I do not think it means that, it does not mean that necessarily ", he said.
" It could mean a stake in British Leyland of a size we do not know yet."
He was asked:
"But government control ? " and replied:
" It could well be, or it could be less than control."
He added that it was his intention to start work, as the Government's industrial adviser, soon after 7 am each day.
" That is going to shake them in Whitehall a bit ",
Robin Day, the interviewer, said.
DAILY EXPRESS
WHY CITY SAID NO TO LEYLAND CASH
By John Roberts
Has the City let down British Leyland? Has it failed to give well - deserved financial support to the only big British-owned motor car manufacturer and exporter ? You can't be in much doubt about the answer British Leyland's globe trotting, radio pundit chairman Lord Stokes, would give. Time and again he has berated the City, attacking its sense of values in puttinga lower stock market value on the Austin, Morris, Rover, Triumph and Jaguar group, than on one large office block. Relatlons between Lord Stokes and the City have been strained for the last few years. The last straw for the City was when he reacted to a carefully researched, and well argued, analysis of his company by stockbrokers James Capel. Lord Stokes demanded :
"Less criticism and more encouragement from people who have never got their hands dirty in the whole of their working lives."
The man he was attacking began his working life as an engineermg apprentice. The City's disenchantment with Leyland and its handling of militant Left-wing trade unions, was slow to develop—a large part of the company's commercial troubles is attributable to strikes. The City wasn't reluctant to put up large funds for the company, until it became clear that, on normal commercial terms, the group could not justify more. The company has only now gone to the Government for financial aid, after the clearing banks—all the Big Four lend it money—refused to increase, its overdrafts. In view of the political pressure the banks have been under from the Bank of England; overtly, and from other political factions covertly, they would have refused only if the group was totally unworthy of further credit. British Leyland is now in the classical situation; it can't earn enough to cover the interest on what it has already borrowed. So each month the interest is added to the outstanding loan and, as it incurs the liability to pay interest on interest, the burden mounts.
All this is a rare cry from the days when the City backed an enthusiastic young Donald Stokes ,to steer the British motor industry back to prosperity. In asset terms the old British Motor Corporation was bigger than Leyland Motors. But Lord Stokes convinced the City and the financial punditsof the old Government backed Industrial Reorganisation Corporation, that if they mated his greyhound-fast Leyland with the lumbering mammoth British Motor Corporation the result would be a fast moving giant. The big City institutions made a short-term sacrifice in swopping their British Motor shares for those in the enlarged group. And four years later, in 1972, they insured the success of British Leyland's biggest and most ambitious cash raising operation when the group, with jam tomorrow promises, persuaded investors to put up more than £51 million in shares and loans which could be converted into shares.
British Leyland has steadfastly refused to face up to the facts of modern industrial life. If an industry becomes increasingly automated, it is unlikely to need the same number of men and will achieve increased output and efficiency by improved plant. Because British Leyland has failed to get this message foreign, car makers have been able to step up sales enough to maintain their labour force. All the redundancies in the industry will be made by British Leyland. No Government can shield the group from the facts of an international market. A £50 million or £100 million loan is the biggest dole payment you've seen. You are paying the wages of men who aren't really employed.
Bankers are asked to give car group immediate financial aid
By Maurice Corina Industrial Editor
A consortium of bankers comprising Barclays, Lloyds, Midland, National Westminster and First National City is being asked by the Government to provide big additional sums of working capital to British Leyland under a Treasury guarantee. The amount is still the subject of urgent negotiation between the Department of Industry, the Bank of England and the company's financial advisers. The guarantee is intended to buy time while an inquiry team, led by Sir Don Ryder, prepares. a report for Mr Wedgwood Benn, Secretary of State for Industry, on what further financial support may be required to safeguard the company's longer term investment. The findings will be crucial in determining the size of the state shareholding, which is to be a condition of assistance under the Industry Act. Mr Benn will announce soon the names of the other members of the inquiry team; they are to include some members of the departments industrial advisory board, which is headed by Mr Robert Clark, a merchant banker, and includes Sir Raymond Brookes and Mr Adrian Cadbury. Whitehall sources suggested yesterday that up to £100m of special support may be required, but half of that could form a short term borrowing facility over and above present City funds.
Lord Stokes, the chairman of British Leyland, declined to make any comment yesterday before leaving for Cairo, where negotiations are taking place on the possibility of building an assembly plant to serve Arab markets. But Mr John Barber, executive deputy chairman and managing director, moved quickly to reassure the group's 175,000 employees, distributors, shareholders and customers by describing some reports of the present difficulties as "far too alarmist ". Britain's biggest exporter, he said, had made no secret of its long-term capital investment needs and would welcome a satisfactory outcome of discussions taking place with the Government. Shareholders would be consulted at the appropriate time.
" It is true that, like most other industrial companies in the United Kingdom, we are suffering from the effects of inflation and additionally, as a motor company, we are facing lower markets in the immediate future ",
he said.
" Inevitably this means that money is tight. But we anticipated the position way back in January and have been taking action to conserve cash all this year. For example, by restricting hiring we have reduced manpower by 10,000 people, largely by wastage."
Mr Barber added that the external economic position was not improving. The economy campaign had been intensified.
"We have no plans for large scale redundancies or plant closures unless the position deteriorates ",
he said.
"We do not have excess stocks. In fact, we have no stock of finished vehicles other than those normally awaiting dispatch, and some cars are held up temporarily by the Triumph strike. Our distributors and dealers generally have adequate stocks of most of our models. "
"Today's announcement makes no immediate difference to the day-to-day operation of the corporation. Whatever money might become available, we shall not be relaxing pressure on costs to ensure that we are competitive in world markets."
There were soothing words, too, from Sir Don Ryder, the newly appointed Cabinet adviser on industry and expected to be first chairman of the proposed National Enterprise Board. It was vital, he said, that Britain's biggest exporter be sustained. The world car market was having a difficult time, but that was not a permanent state of affairs. He was infuriated by people speaking of industrial doom. It was unthinkable that Britain would just go to sleep and fall off the edge of the cliff. Nevertheless, Mr Benn and the inquiry team will have a hard time sorting out British Leyland's requirements and maintaining confidence in the present management. There is evidence that the Government was caught wrong-footed on Thursday (a long-standing appointment for an interview I arranged with Mr Benn for yesterday morning was cancelled the previous evening). For some time British Leyland and the Department of Industry have been holding regular meetings to review the company's continuing difficulties. But all suggestions of special aid have drawn bitter denials. Only recently Lord Stokes dismissed such talk as " foolish chatter ", but the City took more notice when the financial director, Mr Alec Park, said that up to £70m was needed to safe-guard future investment plans.
Earlier this year British Leyland decided to stretch out its £500m capital programme over seven years instead of the original five. Trade union leaders have been co-operating in a programme of the utmost economy although labour troubles have continued. The group, which made a loss in the first half of the present financial year of £16.6m was badly affected by the three-day week. Now the worsening prospect for car sales, affecting all world manufacturers, have made necessary a fresh look at financial resources, and the falling ratio of self-financing to borrowings.
There are difficulties in overseas operations, such as in South Africa and Australia. A Spanish plant was sold recently to General Motors. Since British Leyland was formed in 1968 with a Labour Government's guiding hand and some help from the former Industrial Reorganization Corporation, the group has sold about £7,000m of vehicles, about half overseas. The heavy fixed costs of motor manufacturing require certain minimum levels of output at the 59 factories in Britain. Mr Benn's inquiry team will need to pay close attention to a deteriorating marketing situation in establishing cash requirements for next year and beyond. There is a close relationship between home production and export pricing, and the top management may favour some import restrictions if sales drop badly and stocks begin to rise. Over the past year several senior managers have left British Leyland and there were some important departures from the board room before the elevation last autumn of Mr Barber to deputy chairman. Although they are not saying it publicly, many ministers believe that British Leyland must come under majority state control and have its financing put on a more assured base. Mr Benn will outline the terms of his Industry Act soon, with provisions for state equity holdings and the early establishment of the National Enterprise Board to manage such holdings.
For his part, Mr Barber is not opposed to a state shareholding. He told The Times in July:
"I do not object in principle so long as it does not involve us in interference and does not prejudice our ability to provide employment, make motor cars, and compete effectively with the Europeans and Japanese."
British Leyland is due to reveal its latest financial position on December 18, when the full financial year's results will be given. An overall loss is expected, in spite of a modest surplus in the second half to the end of October. The corporation has lost more than £70m of production through strikes this year. The Government has apparently been told that one immediate investment which needs safeguarding is the £60m scheme for a new factory for Rover-Triumph, which is seen as a bigger contributor to profits. It is the first important plant to be built since the group was put together by merging Leyland Motors with the British Motor Corporation which includes the Austin and Morris divisions. Several new models are due to be introduced next year, demanding heavy promotional spending as well as the necessary expensive stockbuilding. Co-operation with the Government is nothing new to British Leyland, which received some years ago £10m in loans to finance machine tool purchases. It is also involved in the joint venture at Workington, Cumbria, producing the Leyland- National bus in collaboration with the nationalized National Bus Company.
Nationalization uncertain: Sir Don, interviewed yesterday on the BBC 2 Newsday programme said, of Mr Benn's reference to a measure of nationalization that he did not think it meant that British Leyland would be fully nationalized.
"I do not think it means that, it does not mean that necessarily ", he said.
" It could mean a stake in British Leyland of a size we do not know yet."
He was asked:
"But government control ? " and replied:
" It could well be, or it could be less than control."
He added that it was his intention to start work, as the Government's industrial adviser, soon after 7 am each day.
" That is going to shake them in Whitehall a bit ",
Robin Day, the interviewer, said.
DAILY EXPRESS
WHY CITY SAID NO TO LEYLAND CASH
By John Roberts
Has the City let down British Leyland? Has it failed to give well - deserved financial support to the only big British-owned motor car manufacturer and exporter ? You can't be in much doubt about the answer British Leyland's globe trotting, radio pundit chairman Lord Stokes, would give. Time and again he has berated the City, attacking its sense of values in puttinga lower stock market value on the Austin, Morris, Rover, Triumph and Jaguar group, than on one large office block. Relatlons between Lord Stokes and the City have been strained for the last few years. The last straw for the City was when he reacted to a carefully researched, and well argued, analysis of his company by stockbrokers James Capel. Lord Stokes demanded :
"Less criticism and more encouragement from people who have never got their hands dirty in the whole of their working lives."
The man he was attacking began his working life as an engineermg apprentice. The City's disenchantment with Leyland and its handling of militant Left-wing trade unions, was slow to develop—a large part of the company's commercial troubles is attributable to strikes. The City wasn't reluctant to put up large funds for the company, until it became clear that, on normal commercial terms, the group could not justify more. The company has only now gone to the Government for financial aid, after the clearing banks—all the Big Four lend it money—refused to increase, its overdrafts. In view of the political pressure the banks have been under from the Bank of England; overtly, and from other political factions covertly, they would have refused only if the group was totally unworthy of further credit. British Leyland is now in the classical situation; it can't earn enough to cover the interest on what it has already borrowed. So each month the interest is added to the outstanding loan and, as it incurs the liability to pay interest on interest, the burden mounts.
All this is a rare cry from the days when the City backed an enthusiastic young Donald Stokes ,to steer the British motor industry back to prosperity. In asset terms the old British Motor Corporation was bigger than Leyland Motors. But Lord Stokes convinced the City and the financial punditsof the old Government backed Industrial Reorganisation Corporation, that if they mated his greyhound-fast Leyland with the lumbering mammoth British Motor Corporation the result would be a fast moving giant. The big City institutions made a short-term sacrifice in swopping their British Motor shares for those in the enlarged group. And four years later, in 1972, they insured the success of British Leyland's biggest and most ambitious cash raising operation when the group, with jam tomorrow promises, persuaded investors to put up more than £51 million in shares and loans which could be converted into shares.
British Leyland has steadfastly refused to face up to the facts of modern industrial life. If an industry becomes increasingly automated, it is unlikely to need the same number of men and will achieve increased output and efficiency by improved plant. Because British Leyland has failed to get this message foreign, car makers have been able to step up sales enough to maintain their labour force. All the redundancies in the industry will be made by British Leyland. No Government can shield the group from the facts of an international market. A £50 million or £100 million loan is the biggest dole payment you've seen. You are paying the wages of men who aren't really employed.
Last edited by nicholls1966uk on Mon Nov 30, 2009 10:19 pm, edited 2 times in total.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 5:24 pm
December 8th 1974
THE OBSERVER
Last strike that broke Stokes's back
by DAVID WILSON, our Labour Correspondent
British Leyland could have survived without Government intervention but for one strike this month — the dispute at Standard Triumph in Coventry, which has stopped production for a month and made 10,000 idle. This argument is put forward by defenders of Lord Stokes , the chairman , who fought , but failed , to keep British Leyland in private hands.
They say that if Leyland had survived the winter, a batch of new models would have restored its finances in 1975. First on the market will be the ADO71 , a replacement for the Austin 1800/2200; it is due out in April but could be earlier. Then there are two new sports cars, the Triumph Bullet and the Jaguar F-type, and a replacement for the Rover and Triumph 2000 saloons. There will also be facelifts for other Triumph saloons and an Allegro estate.
But the strike at Coventry proved too much for the company's finances. Management said it was catastrophic. Some 800 assembly workers are out , demanding payment for the time they were laid off earlier, by a strike of white collar colleagues. Even union leaders have condemned the dispute, which has caused £17 million production losses.
"It is totally unnecessary and counter-productive," Mr Bob Wright , of the Amalgamated Union of Engineering Workers, said yesterday.
Talks about long-term Government assistance preceded this dispute by several months, but it seems to have been the catalyst for Mr Tony Benn's intervention. One bright spot is that 7,500 workers at the Cowley body plant have submitted a claim, strictly within the lines of the social contract. This means roughly £10 a week more, on the production rate of £49.80. Their settlement, due in February, usually is duplicated at the militant assembly plant—where the men want £16 a week more—on the other side of the the Oxford bypass.
Mr John Barber, Lord Stokes's deputy chairman, yesterday failed to persuade the Spanish Government to authorise the sale of British Leyland's Authi plant to General Motors for nearly £28 million. The Government wants it to be bought by a European consortium, at a lower price, and talks are to continue in Madrid next week.
December 9th 1974
" No statement "
When Lord Stokes was asked at Heathrow on his return from Cairo last night if he would be making a statement about British Leyland within the next few days, he replied:
"I should not think so. What is there to make a statement about? I think everyone is getting excited over nothing."
DAILY EXPRESS
STOKES: WE'RE NOT BUST
By John Hampshire
Lord Stokes, 60-year-old chief of cash starved British Leyland, flew back from Cairo last night with a £50 million contract in his pocket and declared defiantly :
"This company is not bust, we are going to go on. We are merely in a cyclical decline and we will come out of it."
Then just as firmly he dismissed weekend suggestion's that he might be planning to resign :
" Not me. I am perfectly happy as I am."
Lord Stokes arrived at Heathrow after signing a contract with the Egyptians to build a Land-Rover and truck assembly plant outside Cairo. A condition of the deal was that British Leyland, now reputed to be wanting to borrow up to £200 million from the Government; should not sell any more products to the Israelis. Lord Stokes hurried from the airport Customs Hall pushing his own suitcases on a trolley and said :
"Not being able to sell to the Israelis would not make any difference to us."
As for the £50 million contract still to be approved by Egypt's People's Assembly—he said :
" I am delighted. Of course I am. It is not, however, going to make any difference to our need for additional capital. If we want to go in for expansion then obviously we need the money."
As he stepped into his brown V12 Daimler, Lord Stokes parried questions about his resignation.
He said: "I have heard nothing about it- I do not pay any attention to Sunday newspaper speculation. I have no intention of offering my resignation."
THE OBSERVER
Last strike that broke Stokes's back
by DAVID WILSON, our Labour Correspondent
British Leyland could have survived without Government intervention but for one strike this month — the dispute at Standard Triumph in Coventry, which has stopped production for a month and made 10,000 idle. This argument is put forward by defenders of Lord Stokes , the chairman , who fought , but failed , to keep British Leyland in private hands.
They say that if Leyland had survived the winter, a batch of new models would have restored its finances in 1975. First on the market will be the ADO71 , a replacement for the Austin 1800/2200; it is due out in April but could be earlier. Then there are two new sports cars, the Triumph Bullet and the Jaguar F-type, and a replacement for the Rover and Triumph 2000 saloons. There will also be facelifts for other Triumph saloons and an Allegro estate.
But the strike at Coventry proved too much for the company's finances. Management said it was catastrophic. Some 800 assembly workers are out , demanding payment for the time they were laid off earlier, by a strike of white collar colleagues. Even union leaders have condemned the dispute, which has caused £17 million production losses.
"It is totally unnecessary and counter-productive," Mr Bob Wright , of the Amalgamated Union of Engineering Workers, said yesterday.
Talks about long-term Government assistance preceded this dispute by several months, but it seems to have been the catalyst for Mr Tony Benn's intervention. One bright spot is that 7,500 workers at the Cowley body plant have submitted a claim, strictly within the lines of the social contract. This means roughly £10 a week more, on the production rate of £49.80. Their settlement, due in February, usually is duplicated at the militant assembly plant—where the men want £16 a week more—on the other side of the the Oxford bypass.
Mr John Barber, Lord Stokes's deputy chairman, yesterday failed to persuade the Spanish Government to authorise the sale of British Leyland's Authi plant to General Motors for nearly £28 million. The Government wants it to be bought by a European consortium, at a lower price, and talks are to continue in Madrid next week.
December 9th 1974
" No statement "
When Lord Stokes was asked at Heathrow on his return from Cairo last night if he would be making a statement about British Leyland within the next few days, he replied:
"I should not think so. What is there to make a statement about? I think everyone is getting excited over nothing."
DAILY EXPRESS
STOKES: WE'RE NOT BUST
By John Hampshire
Lord Stokes, 60-year-old chief of cash starved British Leyland, flew back from Cairo last night with a £50 million contract in his pocket and declared defiantly :
"This company is not bust, we are going to go on. We are merely in a cyclical decline and we will come out of it."
Then just as firmly he dismissed weekend suggestion's that he might be planning to resign :
" Not me. I am perfectly happy as I am."
Lord Stokes arrived at Heathrow after signing a contract with the Egyptians to build a Land-Rover and truck assembly plant outside Cairo. A condition of the deal was that British Leyland, now reputed to be wanting to borrow up to £200 million from the Government; should not sell any more products to the Israelis. Lord Stokes hurried from the airport Customs Hall pushing his own suitcases on a trolley and said :
"Not being able to sell to the Israelis would not make any difference to us."
As for the £50 million contract still to be approved by Egypt's People's Assembly—he said :
" I am delighted. Of course I am. It is not, however, going to make any difference to our need for additional capital. If we want to go in for expansion then obviously we need the money."
As he stepped into his brown V12 Daimler, Lord Stokes parried questions about his resignation.
He said: "I have heard nothing about it- I do not pay any attention to Sunday newspaper speculation. I have no intention of offering my resignation."
Last edited by nicholls1966uk on Sun Mar 14, 2010 10:12 pm, edited 4 times in total.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 5:38 pm
December 10th 1974
1000 men vote to stay out as Leyland crisis talks begin
R. W. Shakespeare
As British Leyland management began two days of talks yesterday with shop floor representatives about the financial crisis which led to government . intervention, the company's labour relations problems, which are again causing massive output losses, took another worrying turn.
A meeting of the 1,000 strikers at the Triumph car plants in Coventry voted to continue their stoppage in support of demands for lay-off pay for time which they lost during the recent strike by control room staff at their plant. All car production is halted with losses totalling nearly £20m worth of vehicles over the past four weeks, and another 8,000 workers in Coventry, Birmingham and Liverpool have been made idle. After yesterday's meeting, shop stewards were predicting a protracted dispute and said that comprehensive picketing of all plants would begin.
Mr Eddie McGarry, union convener at Rover-Triumph, expressed surprise that. the company had made no fresh moves to settle the dispute in view of
'"the startling moves over the weekend'".
The stewards had "rightly" taken a decision they must " sit back and wait for the company to come forward with something "?,
he said.
British Leyland has rejected the claim for lay-off pay which would mean about £44 a week ,for each worker, because its agreements with the car unions specifically rule out these payments when men are made idle by strikes within their own plant. British Leyland faces yet another threat to production in one of its engines factories in Coventry, where the jobs of 4500 production workers are at risk because of industrial action by transport drivers working for an independent contractor. This has meant that no completed. engines can leave the plant and they,are being stockpiled. The two-day meeting between management and shop floor representatives which began yesterday at the Austin-Morris plant at Longbridge, Birmingham provides the first opportunity for consultation since it was revealed last week that British Leyland's financial plight had forced it to go to the Government. for help. This will almost certainly result in some degree of state control.
Malcolm Brown writes:
In London last night Sir Don Ryder, the new Cabinet Adviser on Industry, estimated that it would take about three months to prepare a full report on British Leyland, although there would be earlier interim reports. He has been asked by Mr Anthony Wedgwood Benn, Secretary of State for Industry, to prepare the report to help determine the size of state investment in the group. Sir Don spent the day clearing up his affairs at Reed International, of which he was chairman and chief executive. Today he will move into the Cabinet Office.
Lord Stokes, chairman of British Leyland, and Mr John Barber, the group's managing director, were involved in a series of internal meetings at the group's London headquarters during the day. Following the visit of Mr Barber to Spain over the weekend in an effort to sort out the delay in selling its Spanish operation to General Motors in a £28m deal, British Leyland said concern had been conveyed to the Spanish Prime Minister.
Worker participation:
A call for a form of worker participation to be introduced at British Leyland if public money is injected into the company was made yesterday by nearly 100 Labour MPs, who signed a Commons motion which also urged that any financial support should also be on the basis of public participation.
1000 men vote to stay out as Leyland crisis talks begin
R. W. Shakespeare
As British Leyland management began two days of talks yesterday with shop floor representatives about the financial crisis which led to government . intervention, the company's labour relations problems, which are again causing massive output losses, took another worrying turn.
A meeting of the 1,000 strikers at the Triumph car plants in Coventry voted to continue their stoppage in support of demands for lay-off pay for time which they lost during the recent strike by control room staff at their plant. All car production is halted with losses totalling nearly £20m worth of vehicles over the past four weeks, and another 8,000 workers in Coventry, Birmingham and Liverpool have been made idle. After yesterday's meeting, shop stewards were predicting a protracted dispute and said that comprehensive picketing of all plants would begin.
Mr Eddie McGarry, union convener at Rover-Triumph, expressed surprise that. the company had made no fresh moves to settle the dispute in view of
'"the startling moves over the weekend'".
The stewards had "rightly" taken a decision they must " sit back and wait for the company to come forward with something "?,
he said.
British Leyland has rejected the claim for lay-off pay which would mean about £44 a week ,for each worker, because its agreements with the car unions specifically rule out these payments when men are made idle by strikes within their own plant. British Leyland faces yet another threat to production in one of its engines factories in Coventry, where the jobs of 4500 production workers are at risk because of industrial action by transport drivers working for an independent contractor. This has meant that no completed. engines can leave the plant and they,are being stockpiled. The two-day meeting between management and shop floor representatives which began yesterday at the Austin-Morris plant at Longbridge, Birmingham provides the first opportunity for consultation since it was revealed last week that British Leyland's financial plight had forced it to go to the Government. for help. This will almost certainly result in some degree of state control.
Malcolm Brown writes:
In London last night Sir Don Ryder, the new Cabinet Adviser on Industry, estimated that it would take about three months to prepare a full report on British Leyland, although there would be earlier interim reports. He has been asked by Mr Anthony Wedgwood Benn, Secretary of State for Industry, to prepare the report to help determine the size of state investment in the group. Sir Don spent the day clearing up his affairs at Reed International, of which he was chairman and chief executive. Today he will move into the Cabinet Office.
Lord Stokes, chairman of British Leyland, and Mr John Barber, the group's managing director, were involved in a series of internal meetings at the group's London headquarters during the day. Following the visit of Mr Barber to Spain over the weekend in an effort to sort out the delay in selling its Spanish operation to General Motors in a £28m deal, British Leyland said concern had been conveyed to the Spanish Prime Minister.
Worker participation:
A call for a form of worker participation to be introduced at British Leyland if public money is injected into the company was made yesterday by nearly 100 Labour MPs, who signed a Commons motion which also urged that any financial support should also be on the basis of public participation.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 5:44 pm
December 11th 1974
Lord Stokes, the British Leyland chairman, yesterday issued a special appeal to workers for ' some give and take " in future negotiations to help the company out of its difficulties. In talks between British Leyland management representatives and union officials at the giant Austin-Morris plant at Longbridge, Birmingham, yesterday, details of some of the corporation's present financial problems were spelled out. The shop floor men were told that this year the Longbridge plant alone will have to spend an additional £6m in order to achieve the same output as a year ago. This included a £13m increase in wages and salaries, a £40m increase in the cost of raw materials, a £2m increase in charges for power and a £1m increase in general rates. The management spokesman made it clear that British Leyland could not recoup all of this increase through increased prices. Much of it must come from higher production and greater efficiency.
Lord Stokes, the British Leyland chairman, yesterday issued a special appeal to workers for ' some give and take " in future negotiations to help the company out of its difficulties. In talks between British Leyland management representatives and union officials at the giant Austin-Morris plant at Longbridge, Birmingham, yesterday, details of some of the corporation's present financial problems were spelled out. The shop floor men were told that this year the Longbridge plant alone will have to spend an additional £6m in order to achieve the same output as a year ago. This included a £13m increase in wages and salaries, a £40m increase in the cost of raw materials, a £2m increase in charges for power and a £1m increase in general rates. The management spokesman made it clear that British Leyland could not recoup all of this increase through increased prices. Much of it must come from higher production and greater efficiency.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 5:57 pm
December 14th 1974
£50m short-term aid for British Leyland
By Maurice Corina Industrial Editor
Bankers' guarantees up to a maximum of £50m will be offered to the British Leyland Motor Corporation and its subsidiaries by the Government under Section 8 of the industry Act 1972.
Parliamentary approval for this short-term financial assistance will be sought next Wednesday when Mr Wedgwood Benn, Secretary of State for Industry, will make a further statement on the group's capital requirements. He is also expected to name the team to help Sir Don Ryder, the Cabinet's industrial adviser, in identifying longer term requirements. These will determine the size of the proposed state investment in the equity shares. The ceiling of £50m on state guarantees for British Leyland's borrowings over and above present facilities represents one third of the Department of Industry's statutory limit on any sums and liabilities paid to industry as Section 8 aid. Bank guarantees, not large enough to require special parliamentary consent (which covers aid of £5m or more), have recently been given to Alfred Herbert and Ferranti, pending studies of their problems.
Pay claim suspended: A group of trade unionists at the Cowley car assembly plant agreed yesterday to suspend their pay claim
" as a gesture of goodwill in the present financial plight of British Leyland ". They have also offered to work essential overtime without pay until the company's finances improve. The decision was announced by Mr Paul Hogan, senior process engineer, who is on the factory committee of the Oxford branch of TASS, the supervisory section of the Amalgamated Union of Engineering Workers.
£50m short-term aid for British Leyland
By Maurice Corina Industrial Editor
Bankers' guarantees up to a maximum of £50m will be offered to the British Leyland Motor Corporation and its subsidiaries by the Government under Section 8 of the industry Act 1972.
Parliamentary approval for this short-term financial assistance will be sought next Wednesday when Mr Wedgwood Benn, Secretary of State for Industry, will make a further statement on the group's capital requirements. He is also expected to name the team to help Sir Don Ryder, the Cabinet's industrial adviser, in identifying longer term requirements. These will determine the size of the proposed state investment in the equity shares. The ceiling of £50m on state guarantees for British Leyland's borrowings over and above present facilities represents one third of the Department of Industry's statutory limit on any sums and liabilities paid to industry as Section 8 aid. Bank guarantees, not large enough to require special parliamentary consent (which covers aid of £5m or more), have recently been given to Alfred Herbert and Ferranti, pending studies of their problems.
Pay claim suspended: A group of trade unionists at the Cowley car assembly plant agreed yesterday to suspend their pay claim
" as a gesture of goodwill in the present financial plight of British Leyland ". They have also offered to work essential overtime without pay until the company's finances improve. The decision was announced by Mr Paul Hogan, senior process engineer, who is on the factory committee of the Oxford branch of TASS, the supervisory section of the Amalgamated Union of Engineering Workers.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 6:06 pm
December 18th 1974
Triumph car strikers accept compromise
By R. W. Shakespeare
Assemblv workers at British Leyland's Triumph car plant in Coventry, whose strike over lay-off pay stopped all production and made 11,000 workers idle, are to go back to work today. But thousands more Midlands car workers were told that they were being laid off for " ex-tended holidays " over the Christmas and new year period. This is because of production cuts made necessary by the depressed state of the car market. The 1,000 Triumph assembly workers, who have been on strike for three weeks, voted at a mass meeting to accept a recommendation of their shop stewards and approve settlement terms reached in negotiations with the management at the weekend. The men have been demanding layoff pay for time lost during a two-week strike by control room staff at the Coventry car plant. The two consecutive disputes have together cost British Leyland about £30m worth of lost production. The settlement is the result of a compromise. Fresh negotiations have taken place between management and unions on the basic issue of layoff pay. The present agreements rule out such payments when men are made idle by disputes of any kind within their own plant. For the next six weeks, while these negotiations are being held, the Triumph workers have been guaranteed payment at 80 per cent of average earnings ,if they are laid off because of any " constitutional strike " when normal negotiating procedures have been exhausted. If there is no long term settlement of the layoff pay question at the end of this six-week period the guarantee may be extended while negotiations continue. One immediate effect of the end of the assembly workers' strike is that some 5,000 unsold vehicles which have been stockpiled in the Triumph plants because of picketing can now be released to dealers. This could help British Leyland's cash-flow problems.
Triumph car strikers accept compromise
By R. W. Shakespeare
Assemblv workers at British Leyland's Triumph car plant in Coventry, whose strike over lay-off pay stopped all production and made 11,000 workers idle, are to go back to work today. But thousands more Midlands car workers were told that they were being laid off for " ex-tended holidays " over the Christmas and new year period. This is because of production cuts made necessary by the depressed state of the car market. The 1,000 Triumph assembly workers, who have been on strike for three weeks, voted at a mass meeting to accept a recommendation of their shop stewards and approve settlement terms reached in negotiations with the management at the weekend. The men have been demanding layoff pay for time lost during a two-week strike by control room staff at the Coventry car plant. The two consecutive disputes have together cost British Leyland about £30m worth of lost production. The settlement is the result of a compromise. Fresh negotiations have taken place between management and unions on the basic issue of layoff pay. The present agreements rule out such payments when men are made idle by disputes of any kind within their own plant. For the next six weeks, while these negotiations are being held, the Triumph workers have been guaranteed payment at 80 per cent of average earnings ,if they are laid off because of any " constitutional strike " when normal negotiating procedures have been exhausted. If there is no long term settlement of the layoff pay question at the end of this six-week period the guarantee may be extended while negotiations continue. One immediate effect of the end of the assembly workers' strike is that some 5,000 unsold vehicles which have been stockpiled in the Triumph plants because of picketing can now be released to dealers. This could help British Leyland's cash-flow problems.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 6:09 pm
December 19th 1974
Ryder Report team named
The team led by Sir Don Ryder which is to investigate British Leyland's situation and prospects was named last night by Mr Wedgwood Benn, Secretary of State for Industry. The members are:
Mr R. A. Clark, deputy chairman of Hill Samuel and chairman of the Industrial Development Advisory Board
Mr S. Giflen, former chairman of Ford of Europe
Mr F. S. McWhirter, of Peat, Marwick Mitchell
Mr H. Urwin, of the Transport and General Workers' Union.
Ryder Report team named
The team led by Sir Don Ryder which is to investigate British Leyland's situation and prospects was named last night by Mr Wedgwood Benn, Secretary of State for Industry. The members are:
Mr R. A. Clark, deputy chairman of Hill Samuel and chairman of the Industrial Development Advisory Board
Mr S. Giflen, former chairman of Ford of Europe
Mr F. S. McWhirter, of Peat, Marwick Mitchell
Mr H. Urwin, of the Transport and General Workers' Union.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 6:19 pm
December 23rd 1974
BLMC gets Spanish approval for Authi sale
General Franco's government this weekend approved the sale of British Leyland's Spanish subsidiary, Authi, to General. Motors. A high official of the Ministry of Industry reportedly said on Saturday night:
"There was agreement at the cabinet meeting on Friday about the conditions in which General Motors may take over Authi ".
The official, Senor Emilio Mirande, director general of steel and shipbuilding, was quoted today by the staid and respectable non-archist daily ABC.
BLMC gets Spanish approval for Authi sale
General Franco's government this weekend approved the sale of British Leyland's Spanish subsidiary, Authi, to General. Motors. A high official of the Ministry of Industry reportedly said on Saturday night:
"There was agreement at the cabinet meeting on Friday about the conditions in which General Motors may take over Authi ".
The official, Senor Emilio Mirande, director general of steel and shipbuilding, was quoted today by the staid and respectable non-archist daily ABC.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
by nicholls1966uk on Mon Aug 25, 2008 6:23 pm
That then was the news for 1974, the year the 4th largest vehicle manufacturer was brought to its knee's.
1975 to follow.
1975 to follow.
Whatever shit happens in this world you can be sure of one thing.
BMW, Tesco and Manchester United will always emerge smelling of roses.
BMW, Tesco and Manchester United will always emerge smelling of roses.
-
nicholls1966uk - Leyland deity
- Posts: 3791
- Joined: Mon Feb 23, 2004 1:48 pm
- Location: The Norfolk Home For The Terminally Groovy
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