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Chrysler Uk Limited

Volume 951: debated on Tuesday 13 June 1978

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asked the Secretary of State for Industry if he has agreed to any changes in the plans for Chrysler UK Ltd., referred to in the agreement signed by him on 5th January 1976.

Yes. The Government's agreement with Chrysler was based on the Stoke, Linwood and truck plan and the C6 plan (SLT/C6), which covered the years 1976–79. However, I have always recognised that Chrysler's plans must be relevant to changing commercial circumstances, and after careful consideration and discussion with those concerned, I have formally agreed to the replacement of SLT/C6 with a revised set of plans.These new plans are embodied in documents that have been initialled by Chrysler Corporation, Chrysler UK and the Department of Industry. A supplemental deed has amended the 5th January 1976 agreement to give effect to the new plans. A copy can be seen in the Library.The new plans agreed with Chrysler give detailed data on industry size, sales, model development, capital expenditure, manpower levels, earnings and funding for the years 1978 and 1979. There are also outline plans for the years after 1979. Although I am unable to reveal the new plans in detail, as this would be against the company's commercial interests, I can say that they show continuity of production and employment at all Chrysler's factories in the United Kingdom, and include a new medium-sized car to be produced at their Ryton plant. No additional cost to public funds is involved.For sound commercial reasons, Chrysler will not introduce a new small light car next year at the company's Linwood plant as originally envisaged.I am satisfied that the plans are now more favourable as well as being more practicable, and offer better prospects for the future of Chrysler operations in this country and for the security of the Government's loans to the company.

asked the Secretary of State for Industry what is the position about a further planning agreement between the Government, the respective trade unions and Chrysler Corporation after the present one ends; what will be the role of the trade unions in any new planning agreement; and what consultations on industrial democracy will be offered to the employees.

pursuant to his reply [Official Report, 12th June 1978] gave the following information:The planning agreement is signed by the Government and Chrysler UK Ltd. Discussions between trade unions and management representatives on the planning agreement working party are continuing and I expect a second agreement to be signed by the summer shutdown in August. Chrysler Corporation is not involved in the discussions. Employee representatives will continue to be closely involved in discussions under the second planning agreement and will participate in regular discussions on the company's future plans.