BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific Arabic Spanish Russian Chinese Welsh
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC NEWS
 You are in: UK: Scotland
Front Page 
World 
UK 
England 
Northern Ireland 
Scotland 
Wales 
UK Politics 
Business 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 


Commonwealth Games 2002

BBC Sport

BBC Weather

SERVICES 
Tuesday, 27 November, 2001, 09:26 GMT
BAE sheds 220 Prestwick jobs
A wing being built
Unions have described the move as "devastating"
BAE Systems has announced plans to shed 220 jobs at its Prestwick plant amid a downturn in the global aviation business.

The aerospace giant will cut almost 1,700 jobs in its regional jets business, with many more posts being axed in the Manchester area.

The company said its business had been affected by the terrorist attacks on the US in September and their continuing fallout.

The cuts were described as "devastating" by union leaders.


It's viable, it's very, very, very efficient, but now because of the strategic decision you are looking at a large slice of the workforce being taken away

John Wall, MSF

Almost 1,000 jobs will be cut from BAE's factory at Woodford in Manchester, 300 in Chadderton, also Manchester, and 219 at Prestwick.

Chief executive John Weston said the company had completed a detailed assessment of the likely impact on its business of the "severe downturn" in the commercial aerospace market.

Mr Weston said: "Since September the trading outlook in these markets has changed substantially."

Profit expectations for the Airbus, which BAE helps build, have been reduced significantly next year and the outlook for regional aircraft has "deteriorated sharply".

Mr Weston added: "Regrettably it has been concluded that our regional jet business is no longer viable in this environment."

BAE said it will continue to build four regional jets already in production but is scrapping a programme to build a successor to the current generation of regional aircraft.

Danny Carrigan
Danny Carrigan is seeking talks with BAE Systems

John Wall, national secretary of the MSF union, said the Prestwick plant had "done absolute wonders since its demise was predicted a couple of years ago".

He told BBC Radio Scotland's Good Morning Scotland programme: "It's fought back from there, it's viable, it's very, very, very efficient, but now because of the strategic decision you are looking at a large slice of the workforce being taken away."

He said the firm's decision came as its other plants in Canada and Brazil were "getting more encouragement and help, financially from their governments".

He added: "We are lobbying parliament very shortly, next week, because of the problems the whole aerospace sector is having. At the specific sites there will be meetings taking place immediately."

Danny Carrigan, Scottish regional secretary of the AEEU, said he would be meeting the company some time over the next few days to discuss the job cuts.

Brian Wilson
Brian Wilson hopes to see redundancies reduced

He added: "We are extremely disappointed at this announcement and hoped the company would be able to avoid redundancies arising from September 11."

Industry Minister Brian Wilson said he hoped the eventual number of redundancies could be "significantly reduced" through redeployment within BAE Systems and at other companies.

"We will work closely with the company in order to maximise the alternative opportunities for those employees who are losing their jobs."

The minister added that while the industry's long term prospects were good, "it would be unrealistic to think that we can escape entirely from the impact of recent events and the repercussions they have had for the industry".

 WATCH/LISTEN
 ON THIS STORY
John Wall of the MSF union
"We are lobbying Parliament very shortly, next week, because of the problems the whole aerospace sector is having"
See also:

27 Nov 01 | Business
BAE closes regional jet programmes
16 Oct 01 | Scotland
GE cuts Scots aircraft jobs
15 Oct 01 | Scotland
Airline slump hits food firm
15 Aug 00 | Scotland
New take-off at Prestwick
13 Mar 00 | Scotland
Jumbo deal secures Scottish jobs
24 Jun 99 | The Company File
BAe cuts 2,200 jobs
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Scotland stories are at the foot of the page.


E-mail this story to a friend

Links to more Scotland stories