Former MG Employees Paid Less

Two out of three people who lost their jobs when car maker MG Rover collapsed in 2005 are now earning less money, research has revealed.

About 60% are now working outside manufacturing and generally earning less money, with an average salary cut of £3,400. People who now work in wholesale and retail real estate and business services education or health and social work took the biggest cuts.

Birmingham Business School and the Work Foundation polled 204 of the 6,300 people made redundant when MG Rover closed its Longbridge plant.

Almost a quarter of respondents said they were in debt or needed to draw on their savings to get by, 36% said they were just about able to manage on their current incomes, and 38% were in a position to save money.

However, nine in 10 of those surveyed were now employed, and the report says that fast action by local agencies to support and retrain workers was a ‘success story’ as large-scale, long-term unemployment in the West Midlands was avoided.