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International Business, 8th Edition by Michael H. Moffett, Iikka A. Ronkainen, Michael Czinkota

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PART 3 CASE 3

CLOSING THE MG ROVER PLANTS: THE AFTEREFFECTS

BACKGROUND

The closure of the MG Rover plant at Longbridge, Birmingham, England in April 2005 was one of the largest industrial failures seen in the U.K. for some 20 years, with around 6,300 workers losing their jobs when MG Rover went into administration, and several thousand more affected in the supply chain. The scale of the job losses in an already economically disadvantaged region and the loss of the last remaining British-owned car manufacturer combined to highlight the consequences of the ongoing decline of manufacturing and the associated human costs of structural change.

By February 2006, of the 6,300 unemployed resulting directly from the collapse, around 4,300 were back at work (90% of whom were working full-time). A further 667 were in training or awaiting training, 398 had received training but were still not working, 530 were not working and had not received any training, 443 had unknown destinations, and 257 had claimed alternative benefits after claiming Job Seekers’ Allowance (RTF, 2006).

THIS REPORT

This report presents findings on where people now live and work relative to before the closure. It also provides a survey that investigates their lives.

KEY FINDINGS

Key points from the report's findings are:

  • Most workers are now in full-time employment on permanent contracts;
  • Most employees have witnessed a significant drop in salary relative to their MG Rover wage, on average a decrease of £5,640 (adjusted ...

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