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'Dark day' as BAE axes 3000 jobs

Alan Jones
Tuesday 27 September 2011 17:53 BST
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Defence giant BAE Systems has confirmed that almost 3,000 posts are to be axed on a "dark day" for British manufacturing.

Sites across the country will suffer cutbacks, while the firm signalled the end of production at its factory in Brough, Yorkshire, which currently employs 1,300 workers.

Unions and politicians attacked the firm for the way the grim news had leaked out over the past three days, saying workers had been treated "appallingly".

Ian King, chief executive of BAE Systems, said: "Our customers are facing huge pressures on their defence budgets and affordability has become an increasing priority. Our business needs to rise to this challenge to maintain its competitiveness and ensure its long-term future."

The biggest job cuts will be at sites in Warton and Samlesbury in Lancashire and at Brough, although staff will also be hit at the firm's head office in Hampshire.

Labour leader Ed Miliband told his party's annual conference that BAE Systems had been "sold down the river" by the Government, which is cutting back on defence spending.

Workers spoke of being in "shock" and many said they were already looking for a new job, while others were described as being "heartbroken and tearful".

The Government said everything would be done to help those affected by today's announcement, but unions warned that so many job cuts threatened the UK's skills base.

The firm said most of the job cuts would be in its military aircraft division, which is being affected by a slowdown in orders for the Eurofighter Typhoon combat jet.

Mr King said: "Some of our major programmes have seen significant changes. The four partner nations in the Typhoon programme have agreed to slow production rates to help ease their budget pressures.

"Whilst this will help extend our production schedule and ensure the production line stays open until we receive anticipated export contracts, it does reduce the workload at a number of our sites.

"Pressure on the US defence budget and top-level programme changes mean the anticipated increase in F-35 production rates will be slower than originally planned, again impacting on our expected workload.

"To ensure we remain competitive, both in the UK and internationally, we need to reduce the overall costs of our businesses in line with our reduced workload.

"The proposals announced today aim to put the business into the right shape to address the challenges we face now and in the future and ensure we are in the best possible position to win future business.

"This transformation process is not going to be easy. We understand that this is a time of uncertainty for our employees and we are committed to working with them and their representatives to explore ways of mitigating the potential job losses."

Unite union national officer Ian Waddell said: "After days of speculation and rumours, our worst fears have been confirmed.

"It's a dark day for thousands of skilled men and women across the country and it is a dark day for British manufacturing.

"BAE Systems have dealt a hammer blow to the UK defence industry and Unite is determined to fight the cuts."

GMB general secretary Paul Kenny said: "The economic prospects are bleak for families and communities affected by these job losses. They add to a jobless total already too high."

Tony Hammond of the Prospect union said the cuts were a "grim reminder" that defence cut backs were still filtering through to industry, adding: "When the country is crying out for highly skilled specialists to help kick some life into the economy, BAE is being forced to make job cuts because of the coalition's defence policies. The Government is sleep walking through a defence skills crisis of its own making."

Business Secretary Vince Cable said: "This news from BAE Systems will be a serious knock to the individuals and communities affected.

"My officials and the BIS (Department for Business, Innovation and Skills) local teams are already in touch with the company, local authorities and local enterprise partnerships to make sure that everything possible is done to help those affected at Brough, Warton, Samlesbury and other sites."

The potential job losses at Brough, Samlesbury, Preston and Warton, affecting both the military aircraft division and the head office, are linked to the changes in Typhoon and F-35 production, said BAE, while those at Christchurch, Frimley, Hillend, Malvern, New Malden and Yeovil are associated with reducing workload on information programmes.

BAE said the potential job losses at Farnborough have been driven by a reduction in Harrier and Tornado work, and job cuts at Royal Air Force bases and overseas by changes to the support requirements for Harrier and Tornado.

All the cuts have been driven by the need to remain competitive, said the company, which employs around 40,000 workers in the UK.

Brough maintenance technician Edward Potter, 29, said he was "off to go home to look for a job", adding: "It is the end of manufacturing at Brough. We were all resigned to it from what we were fed by the media."

David Davis, Conservative MP for Haltemprice and Howden, and Alan Johnson, Labour MP for Hull West and Hessle, spoke outside the factory in Brough after meeting bosses.

Mr Davis said this was the third time he had heard about job losses at the plant through the media, rather than from the company and said the managers should be "ashamed".

Mr Johnson agreed the way the workers had been treated was "appalling" and said the manager who briefed them had apologised for the way the news had been handled.

Union leaders met the company today and raised concerns about the way the announcement had been handled.

BAE denied any suggestion that workers were told the news by email, saying: "BAE Systems employees affected by today's announcement were invited to attend a face-to-face briefing this morning, or telephone conference call where this was the only option. Following the briefings a company-wide announcement was sent to all employees."

Source: PA

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