Labour Research (April 2003)

News

Defence and oil jobs face axe

UK defence giant BAE SYSTEMS is set to cut 1,005 jobs by the end of the year.

Nearly half of the job losses, 492, will be at its Woodford site in Cheshire, while around 200 jobs will be lost at Prestwick in Ayrshire. Sites at Chadderton, near Manchester and Warton in Lancashire will also be affected.

The losses have been blamed on the downturn in the civil aviation market and problems with a Ministry of Defence contract to supply Nimrod maritime patrol aircraft.

Last year the company admitted to difficulties with the contract, saying there would be delays and cost overruns.

Union leaders have accused Anglo-Dutch oil giant Shell of putting safety at risk after it announced plans to cut 350 workers from its North Sea rigs.

Shell said 140 of the job losses would be among its own staff, and the rest from contractors. Some of the job losses will go through natural wastage and voluntary retirement, but Shell admitted that redundancies might be necessary.

The company said the cuts were necessary to keep the rigs viable.

Jim Moohan of the GMB general union called Shell's decision short-sighted, and said he was "extremely concerned about the safety implications."

"If having fewer people in the workplace results in increased danger to our members, then that is something we would want to take up immediately with the Health and Safety Executive."

This information is copyright to the Labour Research Department (LRD) and may not be reproduced without the permission of the LRD.