Vauxhall workers face two-year freeze on pay

Almost 5,000 UK employees at car manufacturer Vauxhall are to face a two-year pay freeze as the company looks to make savings of £265million across Europe.

Employees will not receive their regular pay rise as part of the cost-cutting drive, which has been agreed by Vauxhall, the company’s owners Magna, trade union Unite and the government. The UK business has to save £26.5m to safeguard jobs.

A spokeswoman for the company, which has four sites in Bedfordshire and one in Ellesmere Port, Cheshire, confirmed that no decision had been made on whether internal benefits would be cut to make further savings, but added: “If we don’t make the savings we have to make, then we may have to look at other measures.”

The cost-saving agreement is expected to be signed off in November by the European Commission.

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