Unions 'left in dark' over BAE Brough jobs meetings
UNION leaders have hit out at BAE management for keeping them in the dark about a meeting to discuss ways to save jobs.
The region's MPs are expected to meet with senior BAE managers today at the Brough site to discuss plans to mitigate compulsory redundancies.
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Uninvited: BAE works convenor Roy Cartwright, left, and staff convenor Ian Gent.
However, trade union representatives were only invited along to the meeting after the Mail took the unions' complaints to management.
Roy Cartwright, works convenor at the site, said: "We want to be there, but for some reason, management decided not to tell us about it.
"At the start of this process, the unions were assured we would be involved. Clearly, that is not happening."
Mr Cartwright said union representatives only learned about the meeting during a phone conversation with the office of Hull North MP Diana Johnson.
He said: "Ms Johnson's office had rang Ian Gent, the staff unions convenor, and it came out during the conversation that a meeting was to happen."
Mr Gent accused BAE of a lack of transparency.
"It is very simple. All it would have taken was a phone call to our office. You would have expected that."
Last night, a BAE spokesman relented after a call from the Mail and said unions would be invited to part of the meeting.
Andrew Percy, MP for Brigg and Goole, said he was puzzled why BAE did not seek the involvement of the unions.
He said: "I really do not know why the unions were not asked to attend the meeting to start with.
"As far as we are concerned, the best way is to work together."
In a statement, BAE said: "The meeting is part of the company's regular engagement with the local MPs ensuring they are informed of the progress made through consultations and wider business matters.
"The meeting will cover wider business topics as well as the situation at Brough.
"The company has regular communications forums with the trade unions and is committed to continuing these."
About 845 jobs are set to be lost at Brough after the company agreed to save 54 from its original plan to make 899 people redundant.
Meanwhile, BAE's hopes of securing a deal to partly assemble 126 Eurofighter Typhoon jets at sites in Lancashire have taken a knock.
It follows moves by the Indian Government to give preferred bidder status to French firm Dassault.
Dassault is believed to have put in a lower bid for its Rafale jets, although no formal statement has yet been made.
Sources at BAE said it was "far from a done deal" and that no contract has been awarded to Dassault.
3 Comments
by PerfectMask
Friday, February 03 2012, 3:48PM
“@Kipper321
'Shoved down our throat's' - You logged onto the internet, went to the Daily Mail web-site, read this particular story and then made an inane comment about it. If you don't care, why take the time to read and comment on it ?”
by krumbleo
Friday, February 03 2012, 3:14PM
“Since the September 11th terrorist attacks in 2001, the US defence budget has doubled to roughly $694bn in 2010. This represents 45% of the global total and is more than 11 times larger than Britain's £37bn defence budget. It's no surprise then that investors are worried that the Pentagon is about to get clobbered in the forthcoming round of austerity measures. BAE Systems, the world's second-biggest defence organisation, is a case in point. Its shares have lagged the FTSE 100 by 20% since October. But this seems odd to me.
Ashton Carter, the Pentagon's procurement chief, points out that "the country is at war, and I think people will continue to support a large level of defence spending. And you know it is our intention to keep that where it is and actually grow it slightly, in real terms." And while BAE is exposed to any US and British spending cuts, remember that it is involved in some of the most cutting-edge areas in military technology where budgets are actually being hiked. These include cyber-warfare, for which BAE supplies aerial drones, spy planes and covert surveillance.
In September, BAE also strengthened its position in counter-terrorism with the $296m acquisition of the consultancy division of American firm L-1 Identity Solutions. Then, in November, it was appointed as prime contractor to the FBI, on an eight-year, $30bn deal to overhaul its antiquated IT platforms.
BAE Systems (LSE: BA), rated a BUY by Standard & Poor's
There are other buoyant regions beyond the traditional Nato countries. Britain has signed a bilateral agreement with Brazil that paves the way for BAE to supply the Brazilian armed forces. India – hemmed in by powerful China on one side and belligerent Pakistan on the other – is also a booming market that saw 35% growth in 2009.
Admittedly, some markets are completely out of bounds – most notably China. China is the world's second-biggest spender, yet it makes its kit locally and has historically relied on Russia for know-how. Yet elsewhere, South Korea, the Middle East and Australia are all growing markets. Indeed, CEO Ian King recently commented that the group was "trading in line with expectations" and was less affected by the gridlock afflicting decisions made in the US than many of its rivals.
Britain's 7.5% cuts (in real terms) should only knock about 1p a year off earnings per share (EPS) – or less than 2.5% of 2010 targets. The City is forecasting 2010 sales and underlying EPS of £22.6bn and 42.5p respectively. That puts the shares on a derisory p/e ratio of 7.8, with a 5% dividend yield. I would value the stock on a nine-times earnings before interest, tax and amortisation (EBITA) multiple. After adjusting for the £4.9bn pension deficit and net debt of £1.2bn, that generates an intrinsic value of 390p.
So what are the big risks? Governments are tightening their belts on both sides of the Atlantic and there are the usual problems of operating in the military sector, foreign-exchange fluctuations, and contract delays. There are also ongoing negotiations with Trinidad and Tobago officials over the cancellation of its offshore patrol boats – this could hit profits by £150m.
But with a £43.6bn order book, high-tech expertise, further cost-cutting opportunities and solid prospects in emerging markets, the shares are a buy. Preliminary results are due out on 7 February and Standard & Poor's has a 450p price target.”
by Kipper321
Friday, February 03 2012, 9:48AM
“Why are they left in the dark. Again this BAE job scenario raises its head. Lets go back a couple of months "ITS OVER AT BROUGH" . In light of recent announcements its over for the Typhoon as well so come on on your bike and find a job you robotic excuses for engineers. Other people ar elosing their jobs left right and centre but are they moaning about how sking they are yes for sure but not getting the publicity this story shoved down our thoats every two days. soonest they get Bransholme by the sea finished the better”