JOBS IN JEOPARDY

Press, Volume CVI, Issue 31142, 19 August 1966, Page 11

JOBS IN JEOPARDY

(N.Z.P.A.-Reuter—Copyright) LONDON, August 18. The British Government’s far-reaching deflationary measures announced last month seem today to be biting—at the cost of jobs, particularly in the car export industry. In the last day or so thousands of workers have been warned that their jobs are in jeopardy, while hundreds have already been sacked. Government hopes that the measures would help to restore overseas confidence in sterling also appeared to be justified. Yesterday the pound was

quoted at 2.7894 against the United. States dollar, compared with 2.7873 before the July 20 squeeze. The markets for cars, radio and television—now subject to higher down payments and shorter repayment periods—are the first to be hit. In nearly all cases of sacking managements have given as one of the reasons the reduced demand following the restrictions on credit. Yesterday the vast Vauxhall Motors, the English subsidiary of America’s General Motors, posted notices warning 20,000 workers at their factory at Luton and 5000 at nearby Dunstable that redundancies and short-time working were now possible. “The Government’s economic measures, in conjunction with previous measures, present a more formidable load of restriction than could have been forecast," the management said. Fords, which have already curtailed or eliminated overtime, are hoping to avoid a short-time working week by stockpiling cars in anticipation of the traditional spring demand. The two largest British groups—Rootes and the British Motor Corporation—are not at present contemplating redundancies or short-time working. The company which makes bodies for the Jaguar Mark X is halting production for a month “in anticipation of the possible effects of the credit squeeze.” But other jobs in the factory have been found for the displaced staff. This morning 500 workers

at the radio and television assembly factory of the Rank-Bush-Murphy group at South Shields, north-east England, were warned to seek other work before the factory closes down in October. Although an internal reorganisation is partly responsible for the closure, it is admitted that the credit squeeze has reduced the level of demand. More than 500 workers at the Belfast aircraft factory of Short Brothers and Harland are being paid off after reductions of orders for aircraft.