Car make Jaguar Land Rover have proposed a four day week cutting the hours from thirty five to thirty two. All pay rises will be put on hold until October 2010. This will avoid any compulsory job cuts.
It is believed the news will be received with overwhelming support from the workforce. Car production in the UK has dropped by 59% in the last month and redundancies have never been so high. Jaguar has already cut approximately 1800 jobs in recent months because of the recession.
Workers will vote in the coming week on the proposed deal which could save up to £70 million in costs.
The car industry has told the government that it faces an emergency, and unions have called for a £13billion package of aid. More jobs will be at risk in vehicle manufacturing unless the government eases access to credit and finance. Jaguar Landrover were one of the more vocal manufacturers pressing the government last year.