LDV workers in Birmingham face weeks without pay

Mar 2 2009 by Jon Griffin, Birmingham Mail

Mr Jones said the cash plight of individuals would vary from worker to worker, but many now faced weeks without wages.

The factory has not produced a van since December 12, and production remains at a standstill while talks over a management buyout continue following the decision by Russian owners GAZ to sell.

The MBO team is in the process of drawing up a new funding plan to try to safeguard the future of the factory and transform it into a volume producer of commercial electrical vehicles.

The initial bid for a £30 million bridging loan has been rejected by the Department for Business and now the team behind the MBO proposals are drawing up a revised plan to try to push the buyout through.

“The talks are continuing, and we are going back to the Government with revised plans. We are looking to improve the position to re-present to the Government,” added Mr Jones.

“We are trying to see what we can do to ensure that the MBO goes through and the team stays in Birmingham.

“We are still committed to trying to keep this factory in Birmingham. The alternative is to close the factory down and to sack everybody.

“Lord Mandelson said it was ‘No’ to the plans that we presented but he has left the door open.”

A week ago outgoing GAZ chairman Erik Eberhardson - who is spearheading the attempts to raise money for the buyout - said LDV was “literally running out of cash.”