Honda workers begin lay-off

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Production at the car manufacturing plant in Swindon, Wiltshire, was shut down until June 1 following a dramatic slump in sales.

The 4,200 workers will receive their full basic pay for the first two months, reducing to 60% for the rest of the production shutdown.

Senior directors have stressed the firm's commitment to retaining its Swindon workforce until the summer when the new Jazz model is due to go into production.

But employees were less confident as they left the site after what they hope will not be their very last shift.

Paul Wiseman, 33, a general associate in the engine plant, said the mood on the factory floor was sombre.

He said: "Everyone is feeling a bit down as we're all facing four months off, and we're all a bit worried that it might be more."

But Mr Wiseman, who lives in Swindon, said most staff empathised with the decision made to shut down production. "Everyone has seen the news, we all know we're in a recession," he said. "Honda management are trying their best and there's always a fear that we could lose our jobs, but Honda have told the staff its future is in Swindon."

Dave Hodgetts, senior director of planning and business administration at Honda UK, said the company was doing all it could to protect jobs.

He said: "We will be trying to protect their jobs - that's our priority for the whole period. No one could forecast the impact of the recession on the industry. We've had to take this severe action."