Employees across the UK will not receive their regular pay rise on top of a 5% pay cut and 10% cut in working hours, which was implemented six months ago. The firm is also considering a further reduction in internal benefits as a method of further cost-savings.
Yesterday Vauxhall, new owner Magna, Government and unions analysed the future of the Luton and Ellesmere Port plants and concluded it would be unfavourable to close the most productive plants. It is hoped the pay freeze will secure the jobs of 5,000 British employees.
A spokesman for Vauxhall told HR magazine: "Mandelson told Magna it would only be given financial backing if it creates sustainable work for UK employees."
Vauxhall currently employees 30,000 staff in the UK.