MP Angela Smith has warned businesses are using the recession as an excuse to change terms and conditions for staff.

Mrs Smith raised the issue in the House of Commons after 170 former workers from the Visteon UK factory, in Christopher Martin Road, Basildon, secured vastly improved redundancy payouts.

She said the car parts production firm misled the public, by claiming it was forced into administration by the recession.

Visteon UK had never made a profit and Mrs Smith inferred its American-based parent company used the tough economic climate as an excuse to close factories in Basildon, Enfield and Northern Ireland.

She warned other firms are also taking advantage of the recession.

Mrs Smith said: “Follow- ing my research into the issue it became clear the company’s closure had nothing at all to do with the recession. It had never made a profit.

“Indeed, it has come to light that companies are using the recession as a way of changing the terms and conditions of their staff, even when those firms have not been affected by the recession.”

Frank Jepson, 49, union leader for the Visteon workers, said: “What Angela said was spot on. Firms are using the recession as an excuse to lay people off and change workers’ conditions.”

Jonna Christensen, spokeswoman for Visteon, said: “Visteon UK Ltd was placed into administration following years of cumulative losses.”