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Coventry University DOCTOR OF PHILOSOPHY Plant closure and policy response: An examination of the LDV closure, impact and response Dudley, Thomas Edwin Award date: 2015 Awarding institution: Coventry University Link to publication General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of this thesis for personal non-commercial research or study • This thesis cannot be reproduced or quoted extensively from without first obtaining permission from the copyright holder(s) • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Download date: 30. Sep. 2021 Plant closure and policy response: An examination of the LDV closure, impact and response. By Thomas Edwin Dudley July 2015 A thesis submitted in partial fulfilment of the University’s requirements for the degree of Doctorate of Philosophy Abstract The de-industrialisation of the UK economy caused by globalised international markets, advancements in technology and production with changing consumer demands have made much of what was ‘traditional’ manufacturing redundant; this has led to industrial restructuring or even collapse, resulting in mass job redundancies. Market and industrial pressures have intensified since the late 1990s, culminating in the symbolic collapse of MG Rover in 2005 in addition to other key producers in the West Midlands, which represented the end of mass automotive production in the region (Donnelly et al. 2012). This came alongside various geographical, political and economic factors, including the restructuring of regional development agencies, prolonged industrial decline and a period of national economic recession, which presented challenges for any recovery. This thesis examines more precisely the closure of the commercial vehicle manufacturer LDV in 2009, once a part of the larger conglomerate British Leyland. The closure further reinforced the decline in UK automotive manufacturing until that point. The research involves the corporate collapse of LDV and the local government reaction to the closure and the following re-employment pathways of the redundant LDV workforce. The research continues the discussion of plant closures and the issues that redundant workers face when engaged in the labour market during economic recession. In particular, the thesis contribution employs a qualitative approach to examine the difficulties faced by the office tier, or ‘white collar’, workers who possess relatively high skills and who regarded as flexible and less vulnerable workers within the labour market. Yet this research exposes that highly skilled specialist workers are themselves also subject to unique issues when adjusting to the labour market. This topic is covered through the concept of worker trajectories: the research illustrates the unique employability issues and job precariousness that highly skilled workers can experience. The research concludes that the ability of highly skilled redundant workers to adapt effectively requires local job recovery strategies to implement short- and long-term policies with an emphasis on better job search and network development for individuals to sustain a resilient economy, and to mitigate the effects of plant closure upon redundant workers and maintain high skills within the region. Page ii Dedication I dedicate my PhD thesis to my father, Christopher Dudley, and to the loving memory of my mother, Susan Dudley. My father has provided instrumental support during the most difficult times of my life, despite the immense pressures and strains on him, especially during the time my mother sadly passed away. He always performed admirably and selflessly, for which I will be eternally grateful. It was my mother’s ambition to give me the best education and best chances possible. Though she passed away before she could enjoy and share in my graduation and see me progress through life, this PhD thesis is a direct embodiment of her spirit and her will to see me succeed. Page iii Acknowledgements I would like to express my appreciation and thanks towards the members of my supervisory team, Professor David Bailey, Dr David Jarvis and Professor Nigel Berkeley. They have provided fundamental academic guidance in the creation of this thesis and further still demonstrated great patience and commitment to drive me through the writing process. Their advice on my Ph.D. research and my early career research and development has been invaluable. I would also like to thank Professor Tom Donnelly who provided great third-party insights into my research, offering further direction in the early stages of my research. In addition, I would like to give special acknowledgment to Dr Nick Henry who, although not a member of my supervisory team, contributed immensely in regards to getting the thesis fit for viva submission. I would also like to give my appreciation to all the Coventry University staff that had a hand in the creation, support and assessment process of the thesis. My research colleagues Dr Luke Owen and Dr Charlotte Ray also deserve my sincere thanks. They began their respective Ph.D. research projects alongside me and through their companionship have provided light-hearted social and indeed direct support in creating this thesis. Thanks also go out to a close family-friend Elizabeth McPherson for her writing advice and direction. Lastly, special appreciation goes to my father, Christopher Dudley. He excelled in providing ‘behind the scenes’ logistical and emotional support; without his unwavering and selfless dedication to my research, this thesis would not exist. Page iv Table of Contents Abstract ................................................................................................................. ii Dedication ............................................................................................................ iii Acknowledgements ............................................................................................. iv Table of Contents ................................................................................................. v Table of Figures ................................................................................................... ix List of Tables ........................................................................................................ x List of Acronyms ................................................................................................. xi Chapter 1: Introduction A Case of Plant Closure, Taskforce Response and Worker Recovery ............................................................................ 1 1.1 Contextual Background to the Thesis ...................................................................... 2 1.2 Introduction to Existing Literature and Research ..................................................... 3 1.2.1 Position of the Thesis within Plant Closure Research ....................................... 5 1.3 Aim and Objectives of the Thesis ............................................................................ 9 1.3.1 Objectives and Key Topics of the Research .................................................... 10 1.3.2 Structure of the Thesis and Progression of the Research ............................... 11 1.4 Chapter Summary ................................................................................................. 13 Chapter 2: Closure Waiting to Happen: LDV and Global Automotive Restructuring ................................................................................ 15 2.1 Restructuring of the Automotive Industry ............................................................... 16 2.1.1 A Brief History of the Automotive Industry (from a Western Perspective) ........ 16 2.1.2 The Mechanics of Change, Revolutions and Implications for the Modern Automotive Industry ................................................................................................. 18 2.2 The Modern Auto Industry: Harbinger of Regional Restructuring and Plant Closure .................................................................................................................................... 22 2.2.1 Regional Restructuring of Plant Production ..................................................... 23 2.2.2 The Post-war Boom and Deindustrialisation in the West Midlands Economy .. 27 2.3 LDV: The Road to Closure .................................................................................... 31 2.3.1 LDV’s Heritage: British Leyland ....................................................................... 32 2.3.2 Leyland Trucks within the Modern Commercial Vehicle Sector ....................... 35 2.3.3 LDV’s Dependence on Foreign Investment: The Legacy of Failed Ownership 37 2.4 Summary: LDV on a Failing Pathway .................................................................... 43 Chapter 3: Geographical Political Economy and Plant Closure ................ 45 3.1 Theories and Topics in Relation to Regional Development ...................................