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Rolls-Royce staff fear worst over jobs axe
Hundreds of Rolls-Royce’s workers at its massive Bristol plant are fearing for their jobs after the engineering giant announced plans to axe 2,600 posts over the next 18 months.
The firm said it needs to slash costs by £120million over the next two years to stay competitive. The majority of the job cuts will come in Rolls-Royce’s core aerospace division.
Most of the 3,500 workers at the firm’s sprawling Patchway site work in aerospace – the plant is Rolls-Royce’s main site for manufacturing engines used in military aircraft such as the Eurofighter-Typhoon and the Hawk trainer.
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The announcement, made in a statement to the London Stock Exchange, did not give a breakdown of where the jobs cuts will fall, but the firm said it hoped the majority would be voluntary.
John Rishton, CEO at Rolls Royce, said: “We are taking determined management action and accelerating our progress on cost. The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company.
“We will work closely with employees and their representatives to achieve the necessary reductions on a voluntary basis where possible, while making sure we retain the skills needed for the future.”
The Unite union warned the company was in danger of hollowing out its skills base and could see vital engineering expertise lost to the UK aerospace industry.
National officer Ian Waddell said: “Rolls-Royce is danger of making decisions in the short term that it will later regret.
“Engineering skills and expertise are already in short supply across the aerospace industry and will be difficult to replace should there be an up-turn in business.
“We will be seeking guarantees over no compulsory redundancies and seeking assurances that the company doesn’t turn to casual labour to plug the skills cap in the future, or seek to offshore skilled UK jobs.
“This is a bitter blow to a proud workforce and we will be doing everything we can to fight for jobs and skills.”
Three weeks ago Rolls-Royce said the deteriorating economic conditions meant this year’s profits were likely to be between 3.5% to 4% lower than previously forecast. It was its second profit warning in eight months.
While it expected its core aircraft engine business to strengthen, sales in the oil and gas, mining, construction, industrial and agricultural sectors were being hit by cancelled or delaying orders, it said.
Even if it hits its target of £120m cuts over the next 24 months, Rolls-Royce has pledged to continue to reduce costs by a further £80m.
Reporting from Bristol Business News
Picture: Jordan Tan / Shutterstock.com
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