ianstone
09-09-2010, 08:10 AM
BAE to slash almost 1,000 jobs amid fears £5.2bn super aircraft carriers may be axed
By Ian Drury (http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Ian+Drury)
Last updated at 12:44 PM on 9th September 2010
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Defence giant BAE Systems is planned to axe almost 1,000 jobs as it copes with the inevitable cuts inflicted by the Government's spending review.
Shocked union chiefs warned the move could be the 'tip of the iceberg' amid fears the Royal Navy's two £5.2billion aircraft carriers may be ditched to cut costs.
The Ministry of Defence has asked BAE in the past week to look at the financial implications of scrapping one or both of the 65,000-ton replacement warships.
The defence giant - part of a consortium building the ships - was instructed to look at options including 'one carrier or no carriers', its chief executive, Ian King, said.
The Confederation of Shipbuilding and Engineering Unions warned that the review will mean 'worrying prospects' for the defence industry.
http://i.dailymail.co.uk/i/pix/2010/09/09/article-1310351-0150A16400000578-230_468x328.jpg Cancelled? An artist impression of the front of one of the new super aircraft carriers which could be scrapped in an attempt to cut costs
Mr King made the revelation while giving evidence to the House of Commons' defence select committee yesterday.
The request comes as the Government carries out its Strategic Defence Review, which is looking at ways to save cash in the Armed Forces.
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The men who ran towards the bombs: The Blitz heroes who saved countless lives diffusing UXBs (http://www.dailymail.co.uk/news/article-1310299/The-Blitz-heroes-saved-countless-lives-diffusing-unexploded-bombs.html)
MAX HASTINGS: These cuts could leave Britain defended by rowing boats, Airfix jets and Girl Guides (http://www.dailymail.co.uk/debate/article-1310359/These-cuts-leave-Britain-defended-rowing-boats-Airfix-jets-Girl-Guides.html)
Of BAE's plans to cut jobs, CSEU general secretary Hugh Scullion said: 'The unions are shocked at the scale of these losses and will be demanding an explanation from BAE.
'Talks will begin locally in the first instance to attempt to mitigate the planned losses and if necessary national negotiations will follow. The unions will oppose any compulsory redundancies.'
'With the forthcoming defence review, these cuts may be the tip of the iceberg but knee-jerk reactions from employers could make things even worse.
'Cuts are being demanded before the shape of the defence industry has been decided. The defence industry will suffer more than necessary, if employers make poor judgment calls.'
Until now, the Coalition has refused to acknowledge that the flagship Royal Navy vessels could be axed as part of an attempt to reduce the UK's record deficit.
http://i.dailymail.co.uk/i/pix/2010/09/09/article-1310351-01D61C2F00000578-336_468x314.jpg A model of one of the two new aircraft carriers, which could be scrapped to save £5.2 billion, sits on the flight deck of the HMS Ark Royal
The Government is currently committed to delivering the two carriers, HMS Queen Elizabeth and HMS Prince of Wales, which are due to launch in 2016 and 2018.
But the MoD is under huge pressure to cut its £36.9billion annual budget by up to 20 per cent.
The defence equipment programme is already cumulatively £36billion over budget.
In a stark warning, Mr King said: 'We are at a critical point with some programmes where if you cut back those programmes you would not be able to reconstitute that capability in the UK.'
Labour MP John Woodcock, a member of the committee, said: 'We have to take these warnings very seriously because if we cancel the orders without considering the skills base we could completely lose the UK's entire shipbuilding industry.
'That would do huge damage to the economy and our standing as one of the world's leading maritime nations.'
An MoD spokesman said: 'The Defence Secretary has made clear that tough decisions will need to be made but the complex process of a Strategic Defence and Security Review will be concluded in the autumn.
'Speculation at this stage about its outcome is entirely unfounded.'
Read more: http://www.dailymail.co.uk/news/article-1310351/Super-aircraft-carriers-built-MoD-looks-cut-costs.html#ixzz0z28KIgJ6
By Ian Drury (http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Ian+Drury)
Last updated at 12:44 PM on 9th September 2010
Comments (93) (http://www.dailymail.co.uk/news/article-1310351/Super-aircraft-carriers-built-MoD-looks-cut-costs.html#comments)
Add to My Stories (http://www.dailymail.co.uk/news/article-1310351/Super-aircraft-carriers-built-MoD-looks-cut-costs.html)
Defence giant BAE Systems is planned to axe almost 1,000 jobs as it copes with the inevitable cuts inflicted by the Government's spending review.
Shocked union chiefs warned the move could be the 'tip of the iceberg' amid fears the Royal Navy's two £5.2billion aircraft carriers may be ditched to cut costs.
The Ministry of Defence has asked BAE in the past week to look at the financial implications of scrapping one or both of the 65,000-ton replacement warships.
The defence giant - part of a consortium building the ships - was instructed to look at options including 'one carrier or no carriers', its chief executive, Ian King, said.
The Confederation of Shipbuilding and Engineering Unions warned that the review will mean 'worrying prospects' for the defence industry.
http://i.dailymail.co.uk/i/pix/2010/09/09/article-1310351-0150A16400000578-230_468x328.jpg Cancelled? An artist impression of the front of one of the new super aircraft carriers which could be scrapped in an attempt to cut costs
Mr King made the revelation while giving evidence to the House of Commons' defence select committee yesterday.
The request comes as the Government carries out its Strategic Defence Review, which is looking at ways to save cash in the Armed Forces.
More...
The men who ran towards the bombs: The Blitz heroes who saved countless lives diffusing UXBs (http://www.dailymail.co.uk/news/article-1310299/The-Blitz-heroes-saved-countless-lives-diffusing-unexploded-bombs.html)
MAX HASTINGS: These cuts could leave Britain defended by rowing boats, Airfix jets and Girl Guides (http://www.dailymail.co.uk/debate/article-1310359/These-cuts-leave-Britain-defended-rowing-boats-Airfix-jets-Girl-Guides.html)
Of BAE's plans to cut jobs, CSEU general secretary Hugh Scullion said: 'The unions are shocked at the scale of these losses and will be demanding an explanation from BAE.
'Talks will begin locally in the first instance to attempt to mitigate the planned losses and if necessary national negotiations will follow. The unions will oppose any compulsory redundancies.'
'With the forthcoming defence review, these cuts may be the tip of the iceberg but knee-jerk reactions from employers could make things even worse.
'Cuts are being demanded before the shape of the defence industry has been decided. The defence industry will suffer more than necessary, if employers make poor judgment calls.'
Until now, the Coalition has refused to acknowledge that the flagship Royal Navy vessels could be axed as part of an attempt to reduce the UK's record deficit.
http://i.dailymail.co.uk/i/pix/2010/09/09/article-1310351-01D61C2F00000578-336_468x314.jpg A model of one of the two new aircraft carriers, which could be scrapped to save £5.2 billion, sits on the flight deck of the HMS Ark Royal
The Government is currently committed to delivering the two carriers, HMS Queen Elizabeth and HMS Prince of Wales, which are due to launch in 2016 and 2018.
But the MoD is under huge pressure to cut its £36.9billion annual budget by up to 20 per cent.
The defence equipment programme is already cumulatively £36billion over budget.
In a stark warning, Mr King said: 'We are at a critical point with some programmes where if you cut back those programmes you would not be able to reconstitute that capability in the UK.'
Labour MP John Woodcock, a member of the committee, said: 'We have to take these warnings very seriously because if we cancel the orders without considering the skills base we could completely lose the UK's entire shipbuilding industry.
'That would do huge damage to the economy and our standing as one of the world's leading maritime nations.'
An MoD spokesman said: 'The Defence Secretary has made clear that tough decisions will need to be made but the complex process of a Strategic Defence and Security Review will be concluded in the autumn.
'Speculation at this stage about its outcome is entirely unfounded.'
Read more: http://www.dailymail.co.uk/news/article-1310351/Super-aircraft-carriers-built-MoD-looks-cut-costs.html#ixzz0z28KIgJ6