Once they’ve gone…

Rolls-Royce engineering’s threat to slash 2,600 jobs over the next 18 months could cause long-term damage to the company and leave it without the capacity to take advantage of any upturn in the global economy.

Ian Waddell, Unite national officer, said the union would challenge the lack of longer-term business thinking behind the move which he said was worrying for the future of the company.

“We understand there are competitive and costs challenges but this is the latest in a long line of job cuts. Rolls-Royce is at the world’s cutting edge of engineering with a highly skilled and trained workforce.

“The company’s unique selling points include innovation and engineering excellence. It needs to maintain a highly trained skill base amid a serious shortage of skilled engineers.

“If it does not do that there could be long-term problems. It would not be in a position to take full advantage of any upturn in the global market and Unite will be challenging the business logic behind the proposals.

Rolls-Royce, no longer linked to the luxury carmaker of the same name, has pointed to the job losses falling in the aerospace sector. Up to 1,700 of the job losses could be in the UK if they all go ahead.

“There will be many workers worried about the threat of redundancy,” said Ian.

“They can rest assured that the union will put up fierce opposition to any attempt by the company to force people out. Those who choose to leave voluntarily have highly desirable skills and I would hope they would be in big demand from other companies.”

The company’s aerospace division is the second largest engine manufacturer in the world providing the engines for the new Boeing 787 Dreamliner and Airbus A350 jetliners.

“The measures announced today will not be the last, however they will contribute towards Rolls-Royce becoming a stronger and more profitable company,” chief executive John Rishton said. Those measures included the resignation of the chief finance officer.

 
The measures come in the wake of a series of profit warnings from the company which has seen its share price drop sharply in the last year. Earlier forecasts for sales, profits and cash flows were revised downwards in moves that spooked the City.

 
What is otherwise bad news for thousands of individuals, including the chief finance officer, is often seen as good news in the short-term and perverse world of the City of London. The company’s share price moved up on news of his departure and the job losses.

 
Unite’s eyes are strictly on the long-term future of the company which has commanded a huge reputation for engineering excellence for over 100 years. “It is a bitter blow to a proud workforce and we will be doing everything we can to fight for jobs and skills”, said Ian Waddell.

 
“We are seeking guarantees over no compulsory redundancies. We are 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.”

 
“Experience suggests that many of those who leave engineering are lost forever. We must do all we can to keep skilled people in manufacturing if the UK is to succeed.”