Rolls-Royce unions choose caution

Rolls-Royce workers are to lobby the government

Union leaders say they will not "rush into" industrial action following Friday's announcement of large-scale job cuts at Rolls-Royce.

A meeting of 170 shop stewards at Derby's Rolls-Royce plant was held on Monday to discuss the response.

It is expected that half of 3,800 UK job losses at the aero-engine maker will fall at the firm's Derby base.

We believe we've got to try to be successful by working with the company

Steve Joy, works convenor

Steve Joy, works convenor at the Derby plant, said unions want to work with Rolls-Royce managers but have not ruled out industrial action.

He told BBC News Online: "Today is like the first day of the way forward. We had the sad announcement on Friday and what will follow will change from day to day.

"We're not going to rush into any industrial action.

"We're not going to do that straight away because we believe we've got to try to be successful by working with the company.

"We will look at all areas where we can make improvements. We will then proceed to remove all agency and fixed term contract employees and eliminate overtime.

"We are going to lobby the government. We need a campaign fund to do that.

City council leaders and Derbyshire MPs were due to meet officials of the East Midlands Development Agency on Monday to discuss ways of helping redundant workers.

Aerospace job cuts this year

Boeing:
30,000

Honeywell:
6,500

United Technologies:
5,000

Rolls-Royce:
5,000

Bombardier:
3,800

A spokesman for Rolls-Royce said meetings at all sites between management and union officials would be carried out "in due course".

The cuts follow a review of the company's prospects in the wake of the 11 September terror attacks, and will affect 5,000 employees worldwide.

Aid has been ruled out by Trade and Industry Secretary Patricia Hewitt, who maintained the government would do all it could to help those made redundant.

Union leaders had earlier warned the firm, which employs 43,500 people in 48 countries, against a knee-jerk reaction to the slump in the wider aviation industry.

Cost-reduction plan

Rolls-Royce has said it will reveal details of the regional breakdown over the next few weeks.

In addition to the 5,000 cuts, some 1,000 contract workers will also be shed, the firm said.

Although Rolls-Royce said some sectors of its business would be unaffected, it warned that sales at its civil aerospace business in 2002 were likely to be some 25-30% below this year's.

This fall represents a loss of some £1bn in trade.

Demand for civil aircraft engines is plummeting

Friday's cuts replace a programme announced earlier in the year, under which 2,000 jobs were to be lost as part of a three-year cost-reduction plan.

More than 50% of Rolls-Royce's business is with civil aerospace customers.

It makes engines for a wide range of commercial aircraft including the new long-range Airbus A340 and the Airbus A380 super-jumbo, which has yet to go into commercial operation.

Both Airbus and rival aircraft maker Boeing have confirmed that many airlines have asked for delays in the delivery of aircraft and that new orders have fallen sharply.

Rolls-Royce's US competitor United Technologies - which owns Pratt & Whitney - has already cut thousands of jobs.