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Looking at all the entries above, doesn't seem that wages were such a drain afterall. The first entry doesn't consider revenue at all, just the loan and wage bill. You have to calculate how much the company turned over - the number of cars sold, multiplied by the average sale price. That will have been in the billions...So by and large, the wage bill was covered.

The job-for-life agreement, which actually may have begun as far back as the late eighties, was a vital iniative to build up more trust between management and production staff. Honda, then Rover Group's 'partner' but sadly not now, like all Japanese companies, has a workforce whose instinct was that at work they should do their best, workhard etc etc. Rover Group, like many/most? companies had workers at all levels who felt the company owed them a living and there was the oft quoted 'them and us' attitude to management.

My father, never an enthusiastic union man, did his best I think but he would always talk as if job losses were coming soon.

The 'jobs-for-life' agreement brought about real changes in the confidence and attitude of employees, and surely improved build quality and the overall success of the business, in the process.

The ability of the company to sustain this was undermined of course by BMW, who destabilised the company when they took away Land Rover and Mini.

What to do about it since then I guess is a bit of a thorny question. :boxedin:
 
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