BAE Systems has announced major restructuring of the UK naval ships business. Yards on the Clyde will stay open, but more than 800 jobs will go.
Following detailed discussions about how best to sustain the
long-term capability to deliver complex warships, BAE Systems has
agreed with the UK Ministry of Defence that Glasgow would be the
most effective location for the manufacture of the future Type 26
ships. Consequently, and subject to consultation with trade union
representatives, the Company plans to consolidate its shipbuilding
operations in Glasgow with investments in facilities to create a
world-class capability, positioning it to deliver an affordable
Type 26 programme for the Royal Navy.
BAE announced that a significant reduction in workload will
follow the peak of activity on the Aircraft Carrier programme, the
six Type 45 destroyers and two export contracts. The
anticipated Type 26 programme will, in future years, address some
of that workload reduction. In the interim period, a proposed
contract for the manufacture of three Offshore Patrol Vessels will
provide additional capability for the Royal Navy and sustain key
shipbuilding skills.
Shipbuilding operations at Portsmouth will cease in the second
half of 2014. Subject to consultation, Lower Block 05 and
Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft
Carrier will be allocated to Glasgow.
Consultation will commence on a total employee reduction of
1,775 that is expected to result from these restructuring
proposals, including 940 in Portsmouth in 2014 and 835 across
Filton, Glasgow and Rosyth, progressively through to 2016.
Source: BAE Systems.