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ARCHIVED - Ford factory in Valencia announces 630 layoffs and the cancellation of the night shift
The decision will have a domino effect on the rest of the automobile industry in Valencia
Representatives from the Ford Almussafes factory have announced that they will be letting go of 630 employees in a new redundancy plan, also abolishing the night shift at the plant as a consequence of the reduced production of vehicles due to a drop in demand caused by the coronavirus pandemic.
The company has named the bad performance of models like the Mondeo and the Galaxy as one of the reasons for the decision, and in consequence daily production will be reduced by 280 units, leaving the total at 1,340 vehicles a day. Representatives have stated that the volume of production will be re-evaluated at the beginning of April.
After a further 630 staff are laid off, the number of employees will drop to around 6,500, whereas just 5 years ago the workforce was made up of around 10,000 people.
Trades unions were surprised by the news as they had not expected such a large number of layoffs, and Carlos Faubel, president of the working council led by the UGT, has asked for a 15-day recess before starting one of the “toughest negotiations in his memory”. He has also stated that he cannot rule out demonstrations and protests.
The UGT and other unions, like the CGT, have called for new investments to alleviate the fall in demand and have stated that electric and hybrid cars are the only long-term hope for the sector.
The news will not only affect staff at the factory, as the whole automotive sector in the region of Valencia will be impacted. Over 100 companies, employing around 29,800 employees while supplying different materials and services to the automotive sector in the region, are likely to suffer a “domino effect” from this decision.