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Rochester defence workers should not fear for their jobs

10:35, 20 September 2012

BAE systems
BAE systems

Defence workers in Rochester should not worry about their jobs, according to a spokesman for BAE Systems which is in merger talks with Airbus owner EADS.

Leaked information that the two were considering a £40bn joint business raised fears among employees, which include 1,400 at the City Way plant, about their job security.

The Medway complex is responsible for major defence contracts, including the supply of hi-tech helmets and head-up displays for the Typhoon Eurofighter.

A BAE Systems spokesman admitted that merger talks were always going to be “a little bit destabilising and worrying.” But, he said: “When you look at the facts, there isn’t really much to worry about and hopefully we will be able to give them concrete reassurance relatively soon.”

He added: “This isn’t predicated on being able to cut the workforce because there is very little overlap between the two businesses.”

However, MPs with BAE plants in their constituency, have raised concerns about job security.

BAE Systems employs 93,500 people worldwide, including 35,000 in the UK. Experts have claimed that the proposed merger is overdue, and needed to fight competition from US giants such as Boeing and Lockheed-Martin.

BAE Systems’ former chief executive Martin Turner said it was the defence company’s “last chance saloon” and that it should have pursued merger talks with US companies years ago.

Although both companies have a long history of collaboration, there are many regulatory hurdles to overcome, with four governments having a stake in the Eurofighter project, and four in Airbus.

The British Government is concerned that EADS retains Airbus wing manufacture in the UK.

There are also concerns over the proposed 60:40 ownership split in favour of EADS, the location of its headquarters, who would lead a united company, and whether shareholders would back any recommendation that emerge from talks.

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