Stoking up anti-EU sentiment may be popular with the right-wing press, but it creates uncertainty around jobs and investment.
This week’s statement by Stephen Odell, head of Ford Europe, warning of the possible adverse economic consequences that could follow if the UK chose to exit the European Union, is yet another shot across the bows of the increasingly hostile anti-EU stance being taking by the Tories.
Odell told the Daily Telegraph that, in the event of a future UK exit from Europe, Ford would have to re-evaluate its operations in Britain.
“Clearly we wouldn’t be alone in doing that. Would it mean tariffs? Would it mean duties? We’d take a look at what it meant,” Odell said.
“I would strongly advise against leaving the EU for business purposes, and for employment purposes in the UK.”
Ford employs over 8,500 workers directly in the UK at its engine plants in the North West, South Wales, Dagenham, in R&D in the South East and in warehousing in the Midlands.
Odell’s remarks follow similar warnings from Japanese vehicle manufacturers with major operations in the UK – notably Nissan. Nissan CEO Carlos Ghosn said of any EU exit:
“Obviously it’s going to be a major factor happening and we are going to need to consider what does it mean for us for the future. If anything has to change we (would) need to reconsider our strategy and our investments for the future.”
The Automotive Council UK, which has helped with the success of the UK automotive sector, has stated that they “believe that the UK’s active membership of the EU is an essential factor in the automotive industry’s current and future success”.
These ‘up-front comments’ are just the tip of the iceberg. The ‘Brexit’ debate is being stoked up by Cameron and Osborne in response to hard-line Eurosceptics who keep coming back for more. As Janan Ganesh commented in the Financial Times this week:
“[the Eurosceptics]….did what they always do: win a concession they pretend is ‘final’ before coming back for more. Backbenchers who said the referendum speech would satiate them have since hounded Mr Cameron to “guarantee” it takes place in the next parliament by legislating for it in this one.”
The main aim of the hard-line Eurosceptics is to leave the EU no matter what in the belief that all will be fine and it won’t matter in terms of jobs.
The reality is that manufacturers and employers tell Unite they are alarmed at the debate and the antics of the Tories.
They will not say so upfront – for the time being. However, in dealing with companies in manufacturing, including those driving the economy and on whom any economic recovery depends and who employ thousands of highly skilled workers, Unite is aware of their concerns – and the concerns of our members working in these companies.
Stoking up anti-EU sentiment may be popular with the right-wing press, but it creates uncertainty around jobs and investment.
In Unite’s strategy for Manufacturing ‘Made In Britain’, we make the point that trade with the European Union contributes directly to over 3 million jobs in the UK – the EU is still one of the major trading partners for UK businesses.
Trade in goods between EU Member States was valued at €131 million in 2011. Unite believes leaving the EU would put thousands of manufacturing jobs and companies at risk, damage our exports to Europe and the wider global market and damage inward investment in UK manufacturing.
Isolation from the EU for Unite members working in manufacturing is unthinkable.
17 Responses to “Leaving the EU would put thousands of manufacturing jobs at risk”
Daley Gleephart
It would be far better to leave the EU when Nixon’s FIAT currency system collapses entirely. Until then, unless you have enough land and firearms to be self sufficient, it would be better to accept that the words of Nigel Flange are disingenuous and bear a similarity with Julius Caesar’s speeches (People’s Emperor? Like Hell he was).
Timmy2much
1 – Trade with the EU will not disappear if we left the EU. Fact,
2 – If we left the EU we would be open to doing trade deals with the entire world., rather than relying on the eu trade deals which are not necessarily in our best interests. The scared little children that seem to think we are incapable of doing trade deals on our own are just that – scared little children that need nanny to hold there hand.
3 – The massive assumption is that these companies will always stay in this country – there is nothing stopping them just uping and leaving on whim, so why base policies of such monumental consequences on what actions they will take? It is small minded and completely misses the bigger picture.
4 – Manufacturing companies do not control the direction of the country
Timmy2much
you do talk complete rubbish.
Sids666
Ford said exactly the same thing about pulling out if we did not join the Euro…
blarg1987
What has not helped is our sit on the fence attitude, we were a late joiner of the EU and have not taking an active forward role in EU policy.
What you fail to mention is that many of the above Parliament can block and veto if they wish when the changes to the working time directive were proposed the UK Goverment fought tooth and nail to be exempt.
Yes there need to be changes in the EU but we won;t be able to make those changes from the outside.
I do agree the NHS should not be opened up to competition etc but the trick here is to just ignore the EU if we are taken to court our defence willbe we are following the precedentset out by Francend Germany on the nationalised industries and will follow the ruling tht follows their cases. Needless to say the case would be dropped or the legislation would changed and or dropped.