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Friday, 19 October, 2001, 12:30 GMT 13:30 UK
A British icon tarnished
Rolls-Royce engine
There has been a drop in demand for engines
By the BBC's Max Foster in Derby

At the 7am shift change at one of Derby's many Rolls-Royce factories, workers said they had been told nothing about new job losses.

They had read the rumours in the press, but so far there was no confirmation from management.

Half an hour later that confirmation came. Union leaders were told that 5,000 jobs would go - more than even the press had predicted.

Rolls-Royce has factories in the UK and across the world.

It was not clear to workers this morning where the jobs would be lost - but there was little doubt that the Derby plant would bear the brunt of them.

Aviation crisis

It is here that Rolls-Royce makes civil aviation engines, and it is no secret that orders for these engines are drying up.

The company is Derby's biggest employer - anything that happens to Rolls has an impact on the rest of this small city.

The fear is that as the firm scales back production, local suppliers are likely to see their orders cut - sparking off another wave of redundancies.

There is a sense here in Derby that Rolls-Royce was bound to end up in trouble.

It had no way of shielding itself from the crisis in the aviation industry.

But people were hoping for the best.

On Friday, they were reminded that even an icon of British industry cannot guarantee jobs for life.

See also:

19 Oct 01 | Business
Rolls-Royce cuts 5,000 jobs
19 Oct 01 | Scotland
Rolls-Royce staff 'fear the worst'
18 Oct 01 | Business
Profile: Rolls-Royce
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