BAE SYSTEMS welcomes Government announcement on UK shipbuilding strategy
10 Jul 2001
As prime contractor for the programme, BAE Systems welcomes today's announcement by the UK Secretary of State for Defence accelerating the orders for the Royal Navy's latest class of destroyers. Three more D class Type 45 destroyers are to be ordered by the UK Ministry of Defence this year, in addition to the three ships contracted for in December 2000.
BAE Systems Marine will assemble and launch the whole class of up to 12 ships, with a commitment now for the first six ships.
This order will bring significant work to the shipyards at Barrow and at Scotstoun and Govan on the Clyde. The first of class - H.M.S. Daring - will be assembled and launched at Scotstoun, with the focus of design support remaining there for the whole programme. The remaining ships will be assembled and launched at Barrow. All three BAE Systems Marine shipyards will make and outfit substantial sections of each ship and all steelwork for the BAE Systems Marine elements will be produced at Govan.
Commenting on the announcement, Simon Kirby, Managing Director of BAE Systems Marine said: "This order alone secures some 2150 jobs on the Clyde and at Barrow, over and above our current workload. It will enable us to pursue our strategy of working with UK Government towards a meaningful long-term relationship. This will provide value for money for the Government and enable significant investment to be made in our business, creating a world class competitive warship building industry for the UK."
In addition to the discussions over the past months with the UK MOD concerning the Type 45 destroyers, BAE Systems Marine has been undertaking a thorough review of its current and potential order book.
In particular, the business has been working to accelerate work on the Alternative Landing Ships Logistic (ALSL) vessels to be built on the Clyde. While efforts are being made to bring work forward, it is unlikely that this programme will have a significant effect on workload until 2002. A number of other opportunities have also been pursued, but it has become clear that there are no short-term orders to make up the shortfall in work. Unfortunately, as has been consistently said, the order for Type 45 will have no significant impact on these short-term workload issues. Work will continue to be actively sought in both home and export markets to help mitigate this situation.
Consequently the future levels of sustainable employment can now be accurately determined, and it is with regret that BAE Systems Marine is today announcing 1000 redundancies on the Clyde, taking effect progressively over the next six months.
In addition to this position on the Clyde the business has already committed to reducing the cost base at the Barrow Site on the existing workload. It is also with regret that there is therefore a requirement for a further 150 redundancies in Barrow.
The decision concerning redundancies has been made assuming that BAE Systems Marine does establish a contract for the ALSL programme and fully taking into account today's announcement on Type 45 destroyers.
BAE Systems Marine will now be entering a period of consultation with the work force and the trade unions who have been kept informed of the workload position over the past months. The business is committed to minimising the effects of this announcement on its employees by offering:
Selective Voluntary Redundancy programmes
Early retirement
The release where possible of on-site sub-contract labour
A re-skilling programme
Re-deployment opportunities
Re-location assistance
Recruitment restrictions
Stringent control of overtime working
The business will also be working closely with the Scottish Executive and other local organisations as appropriate to seek to mitigate to the maximum extent the impact on redundant employees and their families.
Simon Kirby stated: "Unfortunately today's positive announcement concerning Type 45 has no impact on the short-term workload issues faced by our business. We have done everything we can to address this situation but regrettably have been left with no alternative other than to announce these redundancies. I recognise the concern that this announcement will cause our employees, their families and the local communities and we are determined to handle this restructuring sensitively and professionally."
Additional information:
Once the Type 45 design reaches a stage where BAE Systems Marine can commence significant build activities, work packages will be placed in all three yards. Govan will produce all the steelwork and Scotstoun will assemble the first of class, then Block A (the stern block, including steering gear stores and accommodation) and Block D (the heart of the ship including the Operations Room and the Bridge) on the other ships. Barrow will carry out the final assembly on all ships, except the first of class, in the Devonshire Dock Hall (alongside the Astute submarine). This will secure 1250 jobs on the Clyde and 900 jobs in Barrow. This is the only build strategy that will enable the business to meet both its customer's and its own challenging requirements, not only on Type 45 but also on Astute, and it will also enable the benefits of an extended production run to be realised. The business will then be able to maximise economies of scale in terms of procurement, manufacturing skills, utilisation of facilities and use of floor space.
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
