Eamonn McCann: Why Visteon workers’ refusal to budge puts the focus on Ford
Thursday, 23 April 2009
Administrators KPMG will tomorrow morning ask the High Court in Belfast to order the Visteon workers out of the factory at Finaghy Road North which they have been occupying for the past month.
The hearing, and the response of the 200 men and women sitting in, will be followed closely by workers across the North and beyond, not least at Nortel, Bombardier, Nu-Track, Translink, NCP, etc, and throughout the public service, where employees are being bombarded with warnings that they have no option but to take what’s coming and accept job losses and worsening conditions.
The economic forces behind the destruction of local jobs and conditions are vast, global, far out of reach, runs the propaganda. Fighting back is not an option. Resistance is futile.
But, in fact, there has been nothing impersonal or elemental about the process which led to Belfast workers on March 31 being given 20 minutes’ notice that they were being dumped on to the dole and told there was no money to fund their redundancy entitlements and that they might have to whistle for the pensions they’d paid into.
The plan to sack the workers at Visteon UK’s plants in Belfast, Enfield and Basildon was hatched in January 2007. It represented the culmination of a much broader scheme drawn up by Ford in the US a decade earlier.
Ford set up Visteon Corporation in 1997 and transferred sections of its production lines to the new company. Three years later, Ford and Visteon Corporation formally separated. Visteon Corporation then sub-divided itself into around 40 companies around the world, all owned ultimately by Ford, but each in theory and in corporate law independent both of Ford and of the others.
In 2005 Ford executives at the company’s headquarters in Dearborn in Michigan announced a “fundamental” restructuring, code-named The Way Forward. One key component was a speed-up in outsourcing, forcing suppliers, including wholly-owned suppliers, to compete with each other for contracts and to aim at, in the company’s phrase, the “China Price”: the phrase requires no translation. Plants which fell behind in the race to the bottom were to be cut adrift.
It was in pursuing The Way Forward that Visteon UK ear-marked Belfast for abandonment in January 2007, when Project Protea was drawn up. At the same time, Project Kennedy prepared the closure of other UK outlets.
Project Protea called for the establishment of “duplicate sources for all the Belfast product lines by the end of 2007”. Workers were to be kept in the dark: managers directly involved were instructed to “minimise information leaks by creating isolated project teams”.
Thus the closure plan had been in secret preparation for more than two years before the Belfast workers were given 20 minutes to get out.
They were told at the time that their pension fund was in deficit. But not everybody’s pension fund, it turned out. Until last year, all Visteon UK pensions were held by Visteon UK Pensions Trustees Limited. Then, the pensions of senior employees and managers were transferred to Visteon Engineering Services Pension Trustees Limited. There is a logjam of words there.
But the key fact shines through clearly enough. It’s only the original company which finds itself in diffs. So it’s the rich wot keeps their pensions, the workers who get shafted again.
Workers had been given what they reasonably believed were cast-iron assurances on pensions when Visteon was created in 2000.
Ford executives visited the Belfast plant to deliver the assurances personally. This was vital in ensuring acceptance of the change.
A document handed to the workers declared: “For the duration of your employment with Visteon UK, your terms and conditions ... will mirror Ford conditions ... All terms and conditions, in particular pension entitlements, will be transferred to the new employment contracts.”
This should be kept in mind as Ford spokespersons insist that the company has “no moral or legal duty” to make good the pension deficit.
Trying to work out the operating relationships between the various manifestations of Visteon is a recipe for migraine. This is not an accident. Visteon UK’s accounts tell that, “The company has taken advantage of the exemption under Financial Reporting Standard 8 — Related party disclosures — not to disclose related party transactions with Visteon Corporation or any of its wholly-owned undertakings.”
Thus, we can but speculate as to the significance of the fact that, according to the administrators, Visteon UK went bust owing Visteon Corporation more than £400m.
Visteon Corporation did intervene from the US on April 16 to present leaders of the Unite union with an offer of 16 weeks’ pay per worker in return for ending the Belfast occupation.
The offer merely matched the 90 days’ redundancy consultation the workers had been entitled to anyway, and was speedily rejected.
But if the workers had done what they were told, if the factory hadn’t been occupied, Visteon Corporation would assuredly have stood aloof. There would have been no offer. The only thing which moved the situation even an inch forward was that fact that the workers had refused to move at all.
If the Visteon workers, whatever the outcome of tomorrow’s High Court proceedings, decide not to let a washer leave their factory until they have won a deal that respects their rights, they will be giving good example to workers everywhere and will be entitled to all possible support.
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I am so glad to have found these comments. Please Belfast people let us in England know what the state of play it. A vote was held here last week but there was nothing written down for people to actually know what they were voting for. We are now told that you have not yet voted. There is something not right about this and we feel that we are being divided from you by the Unions. If we all received pay outs, I think that we may well need to set up a legal fund - away from the unions - to fight for the pension. There is something illegal going on and I do not think that we should let Ford get away with it. It may take a few years, but I am sure that we can get support for this. The pension needed to be included in THESE talks and not afterwards!!!
Posted by Vanda | 03.05.09, 09:28 GMT
I presume E McCann is a Trotskyist.
I think "permanent revolution" may be a tad out of fashion.
Just to keep you informed.....although as you all appear to have a vested interest in the outcome I suppose support from any quarter is, for you, welcome.
Posted by J Stanley | 27.04.09, 18:11 GMT
Thank you for this informative article. You are right--there is a "logjam of words" here, and purposely so. Both Ford and Visteon are trying to divest themselves of any responsibility to the workers. The workers have our support here in the United States, and we will continue to raise the issue with the powers that be until this is resolved.
Kate McCabe
National President
Irish American Unity Conference
Posted by Kate McCabe | 25.04.09, 04:30 GMT
Don't think I read a solution at the end of this Eamonn.
Ford is bust, bar the "charity" of the US tax payer. One key reason for it being bust is that for years (30 plus) it failed to deal with the fact that its pension and healthcare costs for its staff were out of step with its ability to pay.( Ie from the money it was making from selling cars)
In NI we can buy any car, from Toyota to Ford. People chose Toyota. Why? When ford builds a car it has to pay 3000$ of healthcare and pension right costs for former employees for every car before it starts with the costs of the car. For Toyota this cost is zero.
Result: Toyota has won the competition, making it the biggest car company in the world while Ford is basket case.
Please tell us the solution!
Posted by Castizo | 24.04.09, 16:07 GMT
As one of the visteon victims, I feel that our local politicians should wake up, stand up and get behind us in our just fight to re-open the Belfast Plant. Dont they realise that if this company gets away with this then other companys will quickly follow suit and scarper out of Northern Ireland leaving more families in the same mess that mine is in. FORD sponsors of the Champions League are Now sponsors of MISERY, POVERTY and REPOSSESSIONS.
Posted by jim tobin | 23.04.09, 16:24 GMT
Very well written Eamonn, and thank you for your personal support which is very much appreciated.
I read Susan's comments regarding your article, and I get angry. Angry because I worked with Susan's husband, and David was probably one of the most dedicated guys I have ever worked with. Nothing was a problem to David, always willing to help. Now his and his family's life (along with my own, of course) has been tossed into turmoil by wealthy, greedy Captain's of Industry!
Posted by Tom B. | 23.04.09, 11:31 GMT
Here here. At last someone who understands the situation and is setting it all out clearly for the rest of the country to understand. Many people on the street cannot understand why these people are standing their ground - they think they might be greedy expecting more. On the contrary they have been exploited and treated like dirt by a major car company who is certainly not in decline. While other car manufacturers are suffering during this recession, Fords are flying off the shelf and there is actually a waiting list for many models. These workers never signed any other contract but the one they signed with Ford - I know because my husband is one of them. They were promised they would always mirror the conditions of all other Ford employees worldwide. Undoubtedly they would love their jobs back because there are no other jobs out there to apply for - but that is unlikely so at least give them a decent redundancy payment to tide them over until they can find something else.
Posted by Susan Kelly | 23.04.09, 09:51 GMT