Price parts spat `is no big deal'

From the Swindon Advertiser, first published Friday 4th Jul 2003.

Employees at Swindon Pressings Limited are said to be unconcerned about rumours that MG Rover is shopping around for a new contract.

The 2,000 strong workforce at the car-parts manufacturers, on Bridgend Road, say they were told about a price dispute two months ago. Stephen Stanley, Swindon Pressing's senior shop steward, said it was Rover's prerogative to look around.

Mr Stanley, 44, who has worked at the company for 25 years, said: "We don't know why it has suddenly come to light because we were told several weeks ago there was a contractual argument over prices.

"MG Rover is perfectly within its right to look around for alternatives. We are not over-worried about the situation but at the end of the day we always want to keep our contracts.

"The workforce has been told that there are no firm plans that any work will go out of this plant."

Yesterday the Evening Advertiser told how MG Rover, which was bought from BMW three summers ago by a business consortium for just £10, is not happy with the price of parts and is considering looking elsewhere.

Swindon Pressings, the county's biggest manufacturing employer, blames the high prices on the growing cost of raw steel, which has recently increased by five per cent.

Mr Stanley said the contract stated that any fluctuations in steel prices are reflected in the price of the finished product ­ the car.

"If the price of raw steel goes up this should be passed on to the customer. Similarly if there is a reduction this, too, is passed on."

Jim D'Avila, a regional officer for the trade union Amicus, said: "This kind of bickering about price goes on constantly.

"MG Rover represents 40 per cent of the work at Swindon Pressings. A few years ago it was more like 70 per cent, so its importance is declining."

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