The Hindu Business Line : Ford-Tata deal: ‘Trade union demands addressed’

Mumbai, Feb. 26 A top official of UK’s trade union, Unite, said on Tuesday that Tata Motors has agreed not to shift production and component sourcing out of the UK after it acquires Jaguar and Land Rover.

Responding to an e-mail sent by Business Line, Mr David Osborne, National Motor Industry Secretary of Unite (the trade union representing employees of Jaguar and Land Rover), said that their concerns regarding job retention in the UK, and production and component sourcing have been addressed.

Ever since Ford’s announcement of ‘focused discussions’ with the Tata Group, Unite has been consistently saying that it will not support the deal unless questions regarding “plant and job security” are properly addressed. The union has been seeking assurances that Tata Motors would source engines from Ford’s plants in the UK.

The Tatas’ reported commitment not to shift production or component sourcing means that the company cannot leverage its lower-cost capabilities in India to turn around the fortunes of Jaguar and Land Rover.

About the contentious issue of the pension fund deficit of Jaguar and Land Rover, Mr Osborne made it clear that “Ford has agreed to pay a substantial amount into the fund to cover the deficit.”

Deal likely soon?

Unite held discussions with Tata Motors last week. The trade union’s open statement suggesting that the labour-related differences are ironed out could indicate that a formal closure of Tata-Jaguar-Land Rover deal is round the corner.

The US and the UK media on Tuesday reported that Tata Motors would announce the Jaguar-Land Rover acquisition on March 5 or 6. However, both Tata Motors and Ford are non-committal about the date of announcement.

“All I can reiterate is that we’re anticipating an agreement early this year. However, we have no further information at this stage,” Ford UK spokesperson Mr John Gardiner told Business Line, in an e-mailed response to a query.