WORKERS at one of Swindon’s largest employers fear further pay cuts after Honda reopened its redundancy programme.

The car giant’s workforce in Swindon is likely to shrink to 3,000 over the next few years, well down from almost 5,000 a couple of years ago.

The company revealed that production figures for 2010/11 are likely to the same as the 100,000 vehicles produced this year - down from the 250,000 maximum of early 2007.

In light of the low production the company has reopened its associate release programme, due to begin on Monday, which was taken up by 1,300 workers earlier this year, leaving the firm with a workforce of 3,400.

The company has admitted that the package will be an enhanced offer but refused to confirm or deny reports from workers that the offer would be 75 per cent up on the settlement paid out in January.

Staff voted to take a 10-month three per cent pay cut from June this year in order to save around 480 jobs. They now further reductions if that target is not met before the December deadline.

While jobs are certain to go the company is keen to stress there will be no compulsory redundancies.

In a statement Honda said sales are unlikely to increase above the levels seen this year, mainly due to the withdrawal of many European scrappage schemes which have helped increase sales during 2009.

Dave Hodgetts, HUM Director said: “We have and will continue to do our utmost to look after our associates while balancing the enormous cost pressures caused by a 50 per cent reduction in our production volume.

We remain fully committed to our Swindon operation, which is Honda’s largest manufacturing facility in the European region.

“Earlier this year, we agreed with our Associate Representative Council (ARC) to introduce a three per cent pay cut for associates and a five per cent pay cut for Managers in order to help absorb the excess manpower costs for this current financial year.

It was a difficult decision to take due to the direct impact on the entire workforce.

“Now, we have to look at next year’s financial situation and production volume and while we had hoped to return back towards a more normal level of production the reality is that this will take more time.

“In order to avoid or minimise any further requirement for pay cuts next year we believe it is only fair to provide our associates with all the information regarding future plans therefore we have offered a further voluntary release programme for associates who may wish to pursue another career outside Honda.

It was also confirmed to all our associates that, as before, the release scheme is entirely voluntary and that no redundancies are planned.”