Future grim for Rover workers

THOUSANDS of workers at ailing car giant MG Rover were sent home on full pay yesterday and were left in no doubt that the chances of a deal to secure their future were slim.

Administrators appointed to run the company after the collapse of talks with a proposed Chinese partner said they had no plans to resume production at Longbridge in Birmingham.

They said that without a £6.5m emergency Government loan they would have announced 5,300 redundancies yesterday.

The European Commission insisted it must approve the bale out, aimed at keeping MG Rover afloat for another week, before the money can be paid.

The 6,000 Longbridge workers held a mass meeting with union leaders and were told to go home to await developments while efforts continued to revive talks with the Shanghai Automotive Industry Corporation (SAIC).

Meanwhile it was revealed that wives and partners of MG Rover workers are planning to march on Downing Street on Wednesday in protest at potential rates of redundancy pay. The women want similar rates for workers at the Birmingham Longbridge plant as for those laid off at other British car plants in recent years.

Administrators revealed that MG Rover and its Powertrain engine business were incurring “very significant losses”, estimated at between £20 million and £25 million per month.