Leyland makes new effort to curb strikes, win sales

Press, 17 February 1978, Page 11

Leyland makes new effort to curb strikes, win sales

British Leyland will soon have smaller, decentralised units with a much reduced level of central management. The group, 95 per cent owned by the British taxpayer, now returns to much more traditional "private company” management precepts than were envisaged and largely attempted under the organisation plans of Lord Ryder, announce din April, 1975.

The new structure would be introduced step by step during 1978, the chairman. Mr Michael Edwardes told 650 of the group’s senior shop floor and management representatives.

In a hard-hitting speech, Mr Edwardes said that 12,500 of the 130,000 workforce will have to leave this year. The losses of the past years in customer and dealer loyalty caused largely by strikes—more than 240,000 cars were lost last year—and resultant slips in quality and long waiting lists could not be made up over the short term, he said. Some worker calls to boost planned output beyond the 819,000 vehicles management expects to be able to make and sell this year to a million were unrealistic, he said: to try to make the size of the business line up with the number of people employed would put the survival of the whole at risk, and imperil the employment of everybody.

In future the name “Leyland” will be confined to the company's extremely successful truck and bus business which will be renamed Leyland Vehicles, Ltd. An umbrella company. BL Cars. Ltd, will retain common functions including marketing and wage bargaining, but three major subsidiaries of BL Cars will be responsible for manufacture and design of the cars and related components. These will be Austin Morris for volume cars. Jaguar Rover Triumph for specialist cars and BL Components embracing parts, foundry and body operations and specialty components both for Leyland and external customers. A central engineering department will be created to co-ordinate long-term product planning. Mr Edwardes announced no plant closures or cut-

backs either in Britain or abroad, but he emphasised that all unprofitable areas of the Leyland operation worldwide would be put under the microscope. At the meeting with managers and shop stewards there was an overwhelming vote of support for the new structure and the plans detailed by Mr Edwardes. The vote of representatives of the mass of Leyland workers was on a motion which included total commitment to making BL a successful motor company and promoting that image world-wide.

The motion added that every effort would be made by all in Leyland to build on the strengths of BL Cars including its comprehensive model range from Mini to Jaguar. The plan includes retention of the present Mini in updated form (it is still the fourth top selling car in

Britain and a substantial success in many overseas market), the introduction of a new. larger “Mighty Mini" and a new medium car range in the early eighties, and development of the highly successful Jaguar. Rover and Truimph ranges. Greater emphasis will also be placed on the four - wheel - drive Land - Rover and Range Rover with an urgent expansion of capacity for them. “In spite of all the com pany's problems." Mr Edwardes said, “BL has a major place in the industrial scene. In nine of the last 10 years it has been the top British exporting company; Leyland alone brings into Britain as much money as the country pays for ail Japanese goods, including cars, cameras, TV and audio equipment; and Leyland is Britain’s seventh largest employer.”