FORD yesterday pulled back from a potential confrontation with its

manual unions over redundancies -- citing the improving UK car market as

the reason for reprieving 295 jobs.

By rescheduling output targets to boost production by 10 vehicles a

day at Dagenham in Essex and 80 a day at Halewood on Merseyside, the

number of required redundancies falls to 885, a figure the company hopes

to achieve without the need for compulsory redundancies.

At talks in London, Ford of Europe vice-chairman Albert Caspers also

withdrew a document concerning the possible contracting out of certain

operations and promised local consultation with the unions. When leaked

last week, the document sparked unofficial strike action across several

Ford plants.

Union negotiators and about 100 Ford workers who lobbied the meeting

were pleased at the outcome but, with management refusing to give

guarantees of no enforced redundancies, warned they would call a strike

ballot should Ford resort to compulsion later in the year.

They hoped that the company's view on the slightly improving UK car

market proved justified but felt that the threat of industrial action

especially at a time when the Mondeo, the Sierra replacement, was about

to be launched was the key factor in Ford's apparent change of heart.

After losing #787m on its UK operations, excluding Jaguar, Ford is

pinning its hopes on the Mondeo helping to restore its fortunes. The car

is assembled in Genk in Belgium with considerable British content,

including engines and transmissions.

A sceptical Mr Jimmy Airlie, chief Ford negotiator for the Amalgamated

Engineering and Electrical Union, spoke of the ''magical'' way the

market had apparently picked up since last Friday ''just enough to

obviate the need for compulsory redundancies''.

He saw it as a victory for common sense and the Ford workers'

determination not to accept compulsory redundancies and summed up the

situation with: ''We had them by the bollocks -- it was game, set, and

match to us.''

Yesterday's events will have little effect on threatened white-collar

cutbacks. Staff unions have a strike mandate in the event of enforced

staff redundancies, which look a possibility as the number of volunteers

still falls 262 short of the 2100 demanded. They are to meet the company

on March 23.

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