Dealing with Auto Industry Rundown and Closures: a perspective from Birmingham Challenges facing Mono-Sectoral Cities, Open Days 2010



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6. Different pathways and stories

  • Differential overall profile
    • Workers in full time job: male, younger, worked slightly less longer at MG Rover
    • Workers in self-employment: older, more qualified, in managerial position at MG Rover and owned their own home
    • Workers in part-time job: female, higher qualifications, worked longer at MG Rover and now work in services
    • Unemployed and looking for work: older, lower qualifications and did not own their own home
    • Inactive: close to retirement age, female, lower levels of education and own their own home.
  • In job
  • 8 months after the closure
  • 3 years after the closure
  • Age
  • Qualification level
  • Managerial position
  • 47%
  • 46%
  • 36%
  • Using same skill
  • Now working in services
  • 56%
  • 68%
  • 66%
  • Travel distance
  • 40%
  • 56%
  • 25%
  • Median income
  • Proportion who increased their income
  • 30%
  • 30%
  • 7%
  • Different pathways to work…

7. Conclusions: Work

  • 90% of ex-workers were back in work 3 years on. Most in full-time job with permanent contract or self-employment.
  • BUT; interviews in 2009 suggest some have lost jobs again
  • Difficulties in finding work: age, skills/experience and too many people applying.
  • Personal initiative and networks have been key to ex-workers finding their current job.
  • 60% use different skils to those used at MG Rover
  • Jobs are diversified with only 30% in manufacturing and a mix of lower and higher occupational status.
  • Different pathways back into work

7. Conclusions: Income & Well-being

  • Median salary / wage substantially lower than at MG Rover (minus £5640 adjusted)
  • A quarter of households in a financially difficult position, but three-quarters financially stable. Two-thirds feel worse off.
  • Overall, respondents perceive their current state of health as slightly worse than when working at MG Rover.
  • 45% see job as worse than at MG Rover but most still like job
  • Those travelling furthest to find work reported more positive ouctomes.
  • 60% undertook retraining or education; some difference in perceptions of health where people have done training
  • Families and connections have played a key role in terms of support.

7. Conclusions:Policy

  • Policy measures had varying degrees of success
  • Policy: Proactive and reactive policies required
  • Advance action and rapid response crucial
  • Need for institutional capacity (  Regional Task Forces)
  • Need to support good quality manufacturing jobs
  • Avoiding sudden closures and try to slow down the process
  • Ensure that employees have skills to cope as industries change, through high quality, flexible education, training, information and mobility programmes (ability to travel).
  • Tailored response

Update: 2008-9 Recession

  • 2008-2010: Regional Task Force
  • Vulnerable places, businesses and people
  • Lessons learned from MG Rover experience
  • Abolition of the English regions:
  • Will this expertise / experience be lost?
  • Wider policy learning?

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