Select Committee on Trade and Industry Appendices to the Minutes of Evidence





  Agreement made April 1998 between Vauxhall Motors Limited (herein called the Company) of the one part and the Amalgamated Engineering and Electrical Union and the Transport and General Workers Union (Vehicle Building and Automotive Group) (herein called the Trade Unions) of the other, covering each and all of the Company's plants and/or operations at Ellesmere Port, Luton and Toddington Road.


  The parties have reached this Agreement on revision to terms and conditions for the period from 3 August 1998 to 2 September 2001 inclusive.


    (i)  With effect from 3 August 1998 base wage rates will be increased by 3.5 per cent. (Pro-rata for those working part-time or under training). The new base wage rates are shown in Appendix A[1];

    (ii)  Effective 6 September 1999 the rates shown in Appendix A will be increased by the greater of 3.0 per cent or the annual increase in the Retail Price Index in July 1999 (published August 1999) (Appendix B1 to be added);

    (iii)  Effective 4 September 2000 the rates shown in Appendix B will be increased by the annual increase in the Retail Price Index in July 2000 (published August 2000) (Appendix C to be added1);

    (iv)  If the average exchange rate for the £ sterling, as measured by Reuters, falls below DM 2.70 for any two consecutive calendar months in the period between 1 July 2000 and 31 August 2001, then the pay rates arising from the increase described in item 2 (iii) above will be increased by an additional 0.5 per cent. This increase will become effective from the first pay week in the third year of the agreement after the exchange rate requirement is reached. (If this increase is able to be paid effective 4 September 2000 it will be included in the rates to be published for inclusion in Appendix C. If the increase is introduced after 4 September 2000 then new rates will be published for inclusion in Appendix D1);

    (v)  From Monday 3 August 1998 the growth rate of current productivity schemes will be moderated by 50 per cent when payments reach the following levels:

Ellesmere Port Plant
Luton Plant


  This agreement commits the Company, its Trade Unions and employees to:

    (i)  achieving the long term productivity improvements already identified in the latest business plans which will allow the Company to reach world wide competitive levels. The relevant information will be shared at each location.

    (ii)  confirming that the utilisation of the latest manufacturing or warehousing techniques used in other parts of industry (eg Andon) will be embraced enthusiastically.

    (iii)  A recognition of the potential future need for economically or technically justified resourcing. Any known potential for such resourcing at the time of this agreement will be communicated at each location for discussion and review at local Joint Plant Committees.

    (iv)  Any separations or early retirements which may be needed to facilitate achieving these improvements will be attained on a voluntary basis.

  NOTE: A more detailed explanation of the aims and requirements of this part of the Agreement entitled "Achieving World Class Standards" is attached as Appendix E[2] of the Agreement and should be read in conjunction with the above.


    (i)  The terms and conditions for new employees engaged on or after 3 August 1998 are revised as follows:

  The starting rate will be 82 per cent of the maximum rate and employees will progress to the maximum rate over three years as follows:

    Completion of Year One  88 per cent of maximum rate;

    Completion of Year Two  94 per cent of maximum rate;

    Completion of Year Three  100 per cent of maximum rate.

  The rates effective from 3 August 1998 are shown in Appendix F. The new rates for 6 September 1999 and 4 September 2000 will be added in Appendices G and H. If the rates are increased as a result of clause 2(iv) after 4 September 2000, they will be published as appendix J2.

    (ii)  Vacation entitlement will start at 5 days less than current employees ie 21 day. But five days will be earned as follows in conjunction with service days:

Service Entitlement
Vacation Entitlement
After Two (2) Years
One Day
22 days
After Five (5) Years
One Day
Two Days
25 days
After Ten (10) Years
One Day
Two Days
28 days
After Fifteen (15) Years
One Day
29 days
After Twenty (20) Years
One Day
30 days

    (iii)  The Productivity Scheme for new hires will be re-indexed to start at zero, based on current productivity payment levels. Increases beyond this level will be the same as for current employees. The zero points for the new employees Productivity Scheme at each site are as follows:

Ellesmere Port Plant
Luton Plant


  Where it is operationally feasible, the Aftersales Warehouse will have the facility to employ a number of part-time employees. This number will not exceed 9 per cent of the full-time employees in the Warehouse. In the first instance, volunteers will be sought from current employees. Before such volunteers are transferred to part time employment they will be given a full explanation of the financial implications of the transfer.


(a)  Spring Bank Holiday Week and/or Summer Vacation Working

    (i)  The Company, has the option to require employees to work on a one shift basis during the Spring Bank Holiday week and/or one week of the Summer Vacation. Initially volunteers will be sought to meet manning requirements. Notice of the Company's intention to use this option will be notified to the affected plant(s) prior to the preceding summer vacation.

    (ii)  Such vacation days will be taken on an individual basis as a block week by agreements made (prior to previous year end), between the Trade Unions and local Management. These rearranged vacations must be taken in the same year that the closure period is worked. If these days are not taken as vacation in that year then they will be lost.

    (iii)  If the Spring Bank Holiday week is required to be worked then the full week, including the Bank Holiday Monday, will be worked. The Bank Holiday Monday will be paid at time-and-a-half.

  NOTE: The existing agreement covering the putting together of other floating days to create a block vacation remains in force.

(b)  Flexibility Agreements

    (i)  The Luton Plant Flexibility Agreement made in July 1997, is accepted as an ongoing agreement which can be implemented to meet Plant requirements as they arise.

    (ii)  The Agreements made at the Ellesmere Port Plant in relation to temporary employees and three shift working are confirmed as ongoing agreements which can be implemented to meet Plant requirements as they arise.

    (iii)  In addition the Ellesmere Port Trade Unions and management commit to agreeing a "corridor" agreement on the same basic principles which apply at the Luton Plant, but adjusted to suit Ellesmere Port Plant requirements. This agreement is to be concluded by 31 December 1998, but if agreement cannot be reached, then the matter will be referred to ACAS for conciliation, and arbitration if necessary, with agreed terms of reference.


  1.  There will be a replacement model for the Vectra at Luton with consequent investment at 45 jph capacity.

  2.  It is intended and planned to build the current Astra throughout its model life and thereafter to source a suitable replacement model at a similar capacity at Ellesmere Port.

  3.  Appropriate investment will be included in Vauxhall's business plan and it is assumed that respective grant aid will be sought. In the event of exceptionally adverse changes to the economic environment which forces a reconsideration of the plan, then the JNC/SJNC will commence talks on the actions to be taken in regard of this.

  4.  In the meantime any possibility for higher production caused by increases in market demand will be actively pursued on behalf of both Plants.

  5.  Exceptional business circumstances apart, there will be no compulsory redundancies arising from the introduction of the changes associated with this agreement.

  6.  A minimum of 25 Modern Apprentices per year will be hired across the company.


  This Agreement represents the limit of changes to general wages and conditions of employment for its duration. The terms and conditions of previous Agreements continue except as modified or discontinued by this Agreement.


    (i)  The rates shown in the appendices apply to all hourly employees who are members of the Pension Plan. There are reductions of between 1.5p and 3.5p per hour for employees on standard shift who are not members of the Pension Plan.

    (ii)  Changes in rates of pay on completion of the qualifying period of service become effective on the first day of the week following the date on which the period of service is completed.

    (iii)  Group Utility Leaders receive an increment of 26p per hour above the rate of employees with whom they are associated.

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