Nissan Delays Wage Talks With U.K. Workers on Brexit Uncertainty
(Bloomberg) -- Nissan Motor Co., which operates Britain’s largest car plant, has delayed the start of wage talks with its U.K. workers until the terms of Brexit have been settled and it has a fuller understanding of the impact on its business.
The Japanese automaker will start negotiations in 2019 “when we have better clarity on the future business outlook,” the company said Monday in a statement. Talks were originally scheduled to start during the fall.
Nissan this month warned of “serious implications” for British industry if no deal is reached between the U.K. and the European Union. The manufacturer’s business could face a 500 million-pound ($580 million) hit to profit should the U.K. fall back on World Trade Organization rules after two years of divorce negotiations, Nissan said last year.
Carmakers including BMW AG and Toyota Motor Corp. issued stark warnings this month as Prime Minister Theresa May tries to reach an agreement on future trade relations. While risks of crashing out of the European Union on March 29 without a deal are mounting, the Confederation of British Industry has estimated that the costs for businesses in the lead up have already run into the billions of pounds.
The company employs about 8,000 people in the U.K., where it makes the Juke and Qashqai models at its plant in Sunderland, England.
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