From a West Midlands reader
The battlelines are being drawn up in Birmingham in what could become a struggle of national importance – over 500 workers at GKN Driveline are threatening to take action to stop the asset stripping and economic vandalism of venture capitalists, and the madness of closing an automotive manufacturing jewel as the industry prepares for the transition to electric vehicles.
The workface, members of UNITE, gave solid support for strike action after its parent company, Melrose GKN said they would close the plant in Erdington, Birmingham, next year. The workers overwhelmingly balloted for strike action – there was a 95 % turn-out, of which 95% voted in favour of strike action, which was due to commence at the end of September.
Previously, with the help of local Labour MP, Jack Dromey, the GKN Driveline workers, UNITE and GKN Driveline management, put together an Alternative Business plan for the site, but this was rejected by Melrose GKN.
But on 22 September, Melrose backtracked in the face of such united and solid opposition and agreed an immediate moratorium on work and machinery being taken out of the Erdington plant – a temporary stop to the feared ‘lift and shift’ – and agreed to talks with ‘key stakeholders’ to ensure a role for GKN Driveline in the transition to Electric Vehicles.
Strike action suspended for the moment
GKN Driveline could have a key role to play in the government’s automotive electrification strategy, with the Erdington site being adjacent to Jaguar-Land Rover. In response to the offer, UNITE has suspended the strike action until 18 October.
GKN Automotive is a global engineering company producing specialist car parts. GKN was bought by venture capitalists Melrose Industries in March 2018. Melrose Industries received much criticism of its acquisition of GKN, which was viewed by many as a ‘hostile takeover’ (The Guardian, March 29, 2018).
During the takeover, Melrose promised shareholders it would establish a ‘UK manufacturing powerhouse’. Indeed, GKN has developed a new e-drive at its Oxfordshire research facility, with UK government funding.
Instead, however, in January Melrose announced it intended to close the GKN Driveline factory in Erdington, threatening 519 jobs, with the work being transferred to elsewhere in Europe. So much for the promise of a ‘UK powerhouse’.
A demonstration of the callousness of venture capitalists like Melrose – and why the GKN Driveline workers will remain on their guard – was seen in Florence in June, and the closure of the GKN Campi Bisenzio plant.
Italian plant surrounded by armed guards
As negotiations dragged on and industrial relations soured, Melrose sacked the 422 workers overnight by email and WhatsApp and closed the plant. When the workers woke up to the shock news, they marched on the plant, only to find it surrounded by armed guards.
The GKN Campi Bisenzio workers are still fighting back. A section of them, despite the armed guards, occupied the plant, while this month demonstrations in support of the workers are being held throughout Italy’s major cities.
The GKN Driveline workers have linked up with their counterparts in Florence, and despite the current reprieve, remain on their guard given the fate of their Italian counterparts.
There has also been much anger locally at the double standards of the Tory government. They have found millions of pounds to save the Nissan plant in a former ‘Red Wall’ area but there has been inaction at the proposed closure of a plant in a Labour held constituency. Business Secretary Nadhim Zahawi said on 15 April 2021 that the Government had met with GKN Automotive management, but stated only that the Government was “monitoring developments” and “stands ready to support those impacted back into work” in the event of the plant being closed.
Sutton Coldfield CLP backing GKN workers
Sutton Coldfield CLP – which neighbours Erdington, and is where many GKN Driveline workers live – is supporting the GKN workers, and invited them to address its recent all-member meeting. There, Frank Duffy, Senior UNITE rep at GKN Driveline, told the meeting: “Could you imagine Merkel or Macron allowing a German or French multinational company shutting its only home plant and moving the work to elsewhere in Europe? There would be a national outcry.”
Sutton Coldfield CLP has sent a resolution supporting the GKN workers to national Labour Party conference, which will now be a composite resolution with UNITE, which all delegates should support. Melrose may have backed off for the moment, but their actions in Florence shows that the united action must be kept up, with support from all the labour movement to keep the Erdington plant open.
