Job Losses Feared At BAE Shipyards Amid Review

Written By Unknown on Rabu, 06 November 2013 | 16.12

More than a thousand losses are to be announced by the defence giant BAE systems in a review of its shipyards, Sky sources have learned.

The announcement, which is expected as early as today, is part of a martime defence review, which BAE systems launched 18 months ago.

The firm has previously suggested it could close of one of its three yards at Govan, Scotstoun and Portsmouth.

The threat of closure of a yard is intensely political with the Scottish referendum looming in 2014.

There have been warnings that to close a shipyard in Scotland ahead of the vote on independence would hand Scottish First Minister Alex Salmond "a victory on a plate".

There is widespread speculation that Portsmouth will be selected for closure, ending 800 years of ship-building history.

But this has triggered fears that if BAE decides to close the yard then the UK would lose the ability to build its own warships if Scotland becomes independent.

Shadow Secretary of Defence Vernon Coaker told Sky News: "Obviously the MoD needs to make the decision on the basis of what is best for the UK's defence industry and what's best for UK ship-building.

"What's best for the defence industry, the security of this country, the defence of this country is extremely important and those are the criteria the government will use in order to determine where it will built its warships."

Type 26 Global Combat Ship The MoD has yet to award the contract to built the Type 26 warship

While BAE has benefited from the Government's massive £5.4bn contract to build two aircraft carrier, it has nothing on its books after that at two of the shipyards.

The lack of work means the workforce will need to be reduced to around 60% of the current number. BAE employs 3,200 at Govan and Scotstoun and 1,200 at Portsmouth.

However, the Government has yet to announce which shipyard will win the contract to build the new Type 26 warship, and this could offset some of the job losses.

Scotland's Finance Secretary John Swinney said: "We have been in dialogue for some time with BAE Systems on the issues surrounding the future of the Clyde shipyards.

"We are awaiting the outcome of BAE's discussions with the Ministry of Defence and are very alert to the situation concerning both yards.

"We are seeking urgent clarity on the future for both Govan and Scotstoun."

A BAE spokeswoman said: "We continue to work closely with the Ministry of Defence to explore all possible options to determine how best to sustain the capability to deliver complex warships in the UK in the future.

"This work is on-going and we are committed to keeping our employees and trade unions informed as it progresses."

The firm refused to comment on speculation over Portsmouth's future.

Hugh Scullion, Confederation of Shipbuilding and Engineering Unions general secretary said: "We have secured talks with senior BAE systems executives early next week to examine the business case of the forthcoming announcement.

"Now is not the time for idle speculation or indeed party political point scoring.

"This is the future of an industry and we need to know from the company and the government directly what their plans for the future of UK shipbuilding are."


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