Plant closures, precariousness and policy responses: Revisiting MG Rover 10 years on

Abstract

With automotive plants being closed in Australia and western Europe, this article reflects on the employment status of ex-MG Rover (MGR) workers following the closure of the Longbridge plant in 2005. In particular, it draws on Standing's typology of labour market insecurity and uses a mixed-methods approach including an analysis of a longitudinal survey of some 200 ex-MGR workers, and in-depth interviews with ex-workers and policy-makers. While the policy response to the closure saw significant successes in terms of the great majority of workers successfully adjusting into re-employment, and with positive findings in terms of re-training and education, the paper finds significant challenges in terms of security of employment, income, job quality and representation at work years after closure. In particular, the paper posits that the general lack of attention to employment security at the macrolevel effectively undermined elements of a positive policy response over the longer run. This in turn suggests longer-term policy measures are required to address aspects of precariousness at work.

General Motor Holden's closure in Playford, South Australia: Analysis of the policy response and its implications for health

“…This assumed that any job is better than no job, but low‐quality work risks adding to health inequity through income insecurity and poor working conditions (Berry, ). Previous UK research suggests that ex MG Rover Longbridge workers reemployed in low‐skilled service jobs felt trapped in precarious cycles of intermittent work resulting in a sense of exclusion and material deprivation (Bailey & de Ruyter, ).…”

“…Research suggests that the displacement effects from an economic shock such as the complete loss of automotive manufacturing and associated unemployment would likely trigger broader economic decline (Bailey & de Ruyter, ; Stanford, , ), with flow on equity consequences. However, there were no explicit mentions of measures to mediate potential community health or social inequity caused by the economic shock of the plant closure in the policy response.…”

“…Finally, measures to ensure decent work and prevent income insecurity associated with future precarious jobs (Bailey & de Ruyter, ) were not considered in the assistance to GMH workers. While research indicates that some workers may require long‐term support (Bailey, ), and the Mitsubishi closure resulted in one third of retrenched manufacturing workers experiencing long‐term unemployment (Beer, ), no longer term support was available.…”

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“…57 However, redundancy payment can also result in perceived financial security acting as a disincentive to act. 58…”

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“…Given that the production hit would cascade down the supply-chain, business support would need to include help for otherwise viable firms through measures such as loan funds, temporary wage subsidies, diversification advice, and tax and rate relief. Workers would need support in terms of training and retraining (Bailey and De Ruyter, 2015). Places affected would need measures to remediate sites, improve connectivity and regenerate places, in turn raising questions over the degree of devolved powers to achieve this.…”