Car manufacturers BMW have made extensive use of temporary labour since they began production of the Mini at their Oxford plant in the UK in 2001. Entering a different market segment from their existing business meant that they were unsure about how demand for the new car would develop and so were looking for some flexibility in their labour resourcing. In addition to maintaining a core permanent workforce, they decided to work with temporary employment agencies to supply labour. Maintaining an approximate 70:30 ratio of permanent to temporary staff was designed to help them adjust the number of people employed according to the level of demand.

In 2009, in response to volatile market conditions in automotive sales, a decision was made to switch from seven-day to five-day working. As a result, the company announced that 850 agency workers would lose their jobs. The announcement was made just before the plant closed for a one-week holiday and at the end of the night shift. There were angry responses from many temporary workers when the announcement was made, some of whom had worked there for several years and had believed that if they worked hard and delivered good quality work, they would eventually be given permanent jobs.

Question 

1 Consider the advantages and disadvantages for companies like BMW of using temporary agency staff.
2 Do the agency workers have a case for feeling aggrieved at being laid off at short notice?