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·Tony Blair's favourite trade union leader last night questioned whether MG Rover will survive as he gave the green light to a strike ballot over pay.
Sir Ken Jackson, joint general secretary of Amicus, accused the biggest British-owned car manufacturer of treating its 7,000 employees, 98% of whom own shares in the company, with contempt.
The strike ballot, he said, was a symptom of serious difficulties at the loss-making Longbridge firm as he signalled that the long "honeymoon" since MG Rover was saved from closure two years ago was over.
"It is obvious that there is some deep-seated problem here," said Sir Ken.
"After all we have gone through, we don't want to see Rover go under. We all recognised from the start that Rover had to have a partner and that they have to have partners for the future.
"If there is to be a future, we have to make sure Rover has the products to sell in what is going to be a very competitive market. There are very few independent companies in this area who have got the resources to launch a new model."
Sir Ken is concerned that MG Rover has apparently failed to find a partner to develop the replacement - due to be launched in 2004 - for the ageing 25 and 45 small and family-sized models.
The decision of the Amicus leadership to follow the T&G transport workers and approve a strike ballot was taken against a backdrop of deteriorating industrial relations.
MG Rover management demanded greater flexibility, including a commitment to put in more hours during busy periods and less in quiet months, in return for a below inflation 2.5% rise.
The company derecognised T&G shop steward Bill Mitchell, who had called for the offer to be rejected, and infuriated employees by announcing it would set up a "job shop" to get rid of anyone "not prepared to continue to fight for the company's success".
A yes vote could trigger the first strike at Longbridge since the days of nationalisation and British Leyland. The car manufacturer remained strike-free after it was sold to British Aerospace and then on to ***.
MG Rover was saved from closure in 2000 when a consortium of west midlands businessmen led by former executive John Towers, now the chairman, bought it for pounds 10 from *** which had lost pounds 800m during a disastrous reign.
A spokesman said: "We remain on track. We estimated a loss of less than pounds 200m for the year 2001 and all the indications are that we will deliver that, which is a considerable improvement on the previous year and the year before that."
"The 2002 target is still aspirationally to break even, which would be a phenomenal return. The business is on track and the medium car is being worked on."
Aiming to roll 200,000 cars off the Longbridge assembly line this year, it is a minnow in global terms and considered far too small to survive as an independent manufacturer.
Talks have been held with the China Brilliance Group, which is partly state-owned, in what could be an echo of an old tie-up with Japanese car maker Honda until that deal ended in acrimony in 1994.
Discussions with other potential partners, including Proton of Malaysia which controls Lotus, failed.
Sir Ken Jackson. . . the honeymoon is over
Sir Ken Jackson, joint general secretary of Amicus, accused the biggest British-owned car manufacturer of treating its 7,000 employees, 98% of whom own shares in the company, with contempt.
The strike ballot, he said, was a symptom of serious difficulties at the loss-making Longbridge firm as he signalled that the long "honeymoon" since MG Rover was saved from closure two years ago was over.
"It is obvious that there is some deep-seated problem here," said Sir Ken.
"After all we have gone through, we don't want to see Rover go under. We all recognised from the start that Rover had to have a partner and that they have to have partners for the future.
"If there is to be a future, we have to make sure Rover has the products to sell in what is going to be a very competitive market. There are very few independent companies in this area who have got the resources to launch a new model."
Sir Ken is concerned that MG Rover has apparently failed to find a partner to develop the replacement - due to be launched in 2004 - for the ageing 25 and 45 small and family-sized models.
The decision of the Amicus leadership to follow the T&G transport workers and approve a strike ballot was taken against a backdrop of deteriorating industrial relations.
MG Rover management demanded greater flexibility, including a commitment to put in more hours during busy periods and less in quiet months, in return for a below inflation 2.5% rise.
The company derecognised T&G shop steward Bill Mitchell, who had called for the offer to be rejected, and infuriated employees by announcing it would set up a "job shop" to get rid of anyone "not prepared to continue to fight for the company's success".
A yes vote could trigger the first strike at Longbridge since the days of nationalisation and British Leyland. The car manufacturer remained strike-free after it was sold to British Aerospace and then on to ***.
MG Rover was saved from closure in 2000 when a consortium of west midlands businessmen led by former executive John Towers, now the chairman, bought it for pounds 10 from *** which had lost pounds 800m during a disastrous reign.
A spokesman said: "We remain on track. We estimated a loss of less than pounds 200m for the year 2001 and all the indications are that we will deliver that, which is a considerable improvement on the previous year and the year before that."
"The 2002 target is still aspirationally to break even, which would be a phenomenal return. The business is on track and the medium car is being worked on."
Aiming to roll 200,000 cars off the Longbridge assembly line this year, it is a minnow in global terms and considered far too small to survive as an independent manufacturer.
Talks have been held with the China Brilliance Group, which is partly state-owned, in what could be an echo of an old tie-up with Japanese car maker Honda until that deal ended in acrimony in 1994.
Discussions with other potential partners, including Proton of Malaysia which controls Lotus, failed.
Sir Ken Jackson. . . the honeymoon is over
