BAE Systems to cut up to 3,000 jobs in the UK

[News_Editor]

BAE Systems to cut up to 3,000 jobs in the UK

2011-09-27 19:06:57 GMT+7 (ICT)

LONDON (BNO NEWS) -- Britain's leading defense manufacturer BAE Systems on Tuesday announced it expects to cut nearly 3,000 jobs due to 'huge pressures' on the defense budgets of its clients. All but nine of the cuts are in the United Kingdom.

The expected job cuts were first reported by Sky News during the weekend but the arms manufacturer did not comment on the reports until Tuesday. Business Secretary Vince Cable said the news is a 'serious knock' to the individuals and communities affected.

BAE Systems said it would cut 899 jobs at its factory in the small town of Brough, located in East Riding of Yorkshire. A total of 1,540 other jobs will be cut at its locations in Samlesbury in Lancashire, Warton and Preston in Lancashire, and Yeovil in Somerset. Other locations in the UK face smaller cuts, and nine positions are to be cut at overseas locations.

"Our customers are facing huge pressures on their defense budgets and affordability has become an increasing priority," said Ian King, Chief Executive at BAE Systems. "Our business needs to rise to this challenge to maintain its competitiveness and ensure its long term future."

King said some of its major programs have seen significant changes as a result of the difficulties. "The four partner nations in the Typhoon program 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," he added.

BAE Systems also said that pressure on the U.S. defense budget and top level program changes mean that the anticipated increase in F-35 production rates will be slower than originally planned, further impacting the company's 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," King explained.

Unite, the biggest union at BAE Systems, said it will vow to fight the cuts and urged the government to intervene. "It's a dark day for thousands of skilled men and women across the country and it is a dark day for British manufacturing," said Unite national officer Ian Waddell. "BAE Systems has dealt a hammer blow to the UK defense industry and Unite is determined to fight the cuts."

Waddell said Unite would meet with BAE Systems on Tuesday to mitigate the impact of the job cuts and called on the government to protect the UK's defense industry. "The government cannot sit on its hands and allow these highly skilled jobs to disappear," he said.

King admitted that the transformation process would not be easy but indicted the company is willing to try to mitigate the job losses. "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," he said.

Paul Kenny, the General Secretary of the GMB union, also called on the government to intervene. "These massive job losses in our major UK manufacturing company shows how far off track the recovery from the international recession now is," he said. "The economic prospects are bleak for families and communities affected by these job losses. They add to a jobless total already far too high."

He added: "GMB officers and shop stewards will now meet with our members and there will be a series of discussions with the company at national and local levels to see what can be done to mitigate the level of job losses and what can be done to create new jobs. We will be looking for support from local MPs and local councilors to put pressure on the company and the government to make the investments needed to diversify into new sustainable jobs."

Business Secretary Vince Cable said his officials and local teams from the Department for Business Innovation & Skills (BIS) are in contact with BAE Systems, which currently employs around 40,000 people.

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