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Potential job losses in BAE Systems UK business

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Following a detailed review of the implications of the UK Government’s Strategic Defence and Security Review and, in particular the impact on the Harrier and Nimrod programmes where we have now received contract termination for customer convenience letters from the Ministry of Defence, BAE Systems has announced it has started consultation regarding potential job losses at six of its UK sites and two RAF bases.

Potential job losses are as follows:

• 79 at Chadderton, Greater Manchester
• 214 at Farnborough, Hampshire
• 55 at Prestwick in Ayrshire
• 119 at Samlesbury, Lancashire
• 668 at Warton, Lancashire
• 15 at Yeovil, Somerset
• 127 at RAF Cottesmore, Rutland
• 30 at RAF Kinloss, Moray

Kevin Taylor, Managing Director of BAE Systems Military Air Solutions commented: “Since the publication of the SDSR in October we have taken time to understand the implications for our business. We have recently received termination for customer convenience notices for the Nimrod MRA4 and Harrier contracts and this has regrettably led us to initiating consultation regarding potential job losses. 

“Today’s announcement is designed to ensure we remain competitive as we actively pursue a number of opportunities for our other products and services both in the UK and internationally.  Military Air Solutions remains a sustainable business with a strong business plan.  I appreciate this is difficult news for our people and we are committed to working with employees and their representatives to explore ways of mitigating the potential job losses.”

Notes to Editors:
• In addition, as a result of the cancellation of the Nimrod MRA4 programme, the consultation will cover potentially closing the Woodford Site in Cheshire earlier than had been previously announced.
• At Chadderton, Prestwick, Yeovil and RAF Kinloss the potential job losses are associated with the cancellation of the Nimrod MRA4 programme. 
• At Farnborough and RAF Cottesmore the potential job losses are associated with the early withdrawal from service of the Harrier fleet.
• At Samlesbury and  Warton the potential job losses are associated with both the cancellation for customer convenience of the Nimrod MRA4 programme and the early withdrawal from service of the Harrier fleet. 
• In addition, BAE Systems Saudi Arabia has today initiated consultation with employee representatives on 90 potential job losses in its UK business, predominantly at Samlesbury. These potential job losses result from the continued realisation of the home market strategy, coupled with our ongoing commitments to Saudisation and Industrialisation in Saudi Arabia.

Ref no: 292/2010
Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384719 Fax: +44 (0) 1252 383947
24hr media hotline: + 44 (0) 7801 717739
www.baesystems.com