Is this a good deal?

There will now be no compulsory redundancies among Vauxhall\’s 5,000 UK workers. Magna, which is in talks to buy Vauxhall and Opel from General Motors, has been accused of being biased towards Germany, which is providing €4.5bn (£4.2bn) to support the acquisition.

The deal – which was driven by Lord Mandelson and Unite, the trade union – is a significant coup for British manufacturing. However, despite the new agreement, Lord Mandelson is still not prepared to provide the hundreds of millions of taxpayers\’ pounds that Magna needs to buy Opel and Vauxhall.

I think the number being talked about is £400 million.

For 5,000 jobs? £80,000 a job? Sounds a bit high doesn\’t it?

Especially when you think that the argument is actually about 600 jobs…..so more like ten times that.

Or we could look at this properly.

All sorts of people are telling us that we\’ve got to move out of certain industries and into others. Green style stuff, you know, making windmills and tide and wave machines. A skilled engineering workforce is of course essential for this. So what are we doing keeping exactly such a skilled engineering workforce in something not green, cars, when we actually want them in something green, not cars?

Answers on a postcard to Lord Mandelson please: preferably before the election which is the real reason he\’s spending our money this way.

One comment on “Is this a good deal?

  1. So what are we doing keeping exactly such a skilled engineering workforce in something not green, cars, when we actually want them in something green, not cars?

    Granted that the actions taken her are expressly political and therefore outside the bounds of your question, the answer to your question could conceivably be that we might wish to retain a skilled engineering workforce so as to make it possible, in future, to build ‘green’ cars.

    If we’re looking to invest properly in moving the car industry in that direction then there may some justification for retaining at least a portion of that workforce. If not then there seems little point in artificially propping a sector that may no longer be viable.

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