Plans of JLR's Saudi Arabia plant sparks tension at UK unit

Written By Unknown on Kamis, 13 Desember 2012 | 21.03

Tension has sparked at the Jaguar Land Rover plants in the United Kingdom after Ratan Tata said the company is looking at the possibility of setting up a manufacturing facility in Saudi Arabia. Workers in the UK want assurances from the company management about their future. Ronojoy Banerjee of CNBC-TV18 gives the details.

The tension does not really come as a big surprise. A few months ago the Jaguar Land Rover (JLR) union and the management were locked in long negotiations over wage settlement. This was one of the concerns that were raised by the workforce because at that point in time, JLR had just announced a new manufacturing facility in China with a new joint venture partner. They were also exploring a similar assembly line at Brazil and there were also talks of a new manufacturing facility in the Middle East.

Now, just barely 48 hours after the company really came out and announced that they are exploring a new manufacturing plant in Saudi Arabia, the apprehensions are once again growing as far as the workforce in all the three United Kingdom (UK) factories of JLR are concerned.

Infact, what they want is a meeting with none other than Ratan Tata himself. They also say that much of the profits that JLR is generating today, is because of the hard work that the workers are putting in at the three UK facilities. They also say that at the time when Tata Motors had acquired JLR, that time there was an assurance given by the management that all future product development would happen in the UK.

A few executives in JLR say that these concerns are absolutely misplaced. They are very committed and that JLR is investing two billion pounds in UK. However, we are told that JLR will issue a statement on this shortly. Lets wait and watch to see what happens.



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