Thousands of jobs at Leonardo Helicopters could be at risk amid fears that its factory in Yeovil will not secure a long-awaited order from the Ministry of Defence (MoD).
Last year Leonardo, which employs around three thousand people locally, was the only bidder for a defence contract worth one billion pounds to deliver the Ministry of Defence’s new medium-sized helicopters.
However the government still hasn’t officially awarded the new contract, which has led to reports that Leonardo may withdraw from the UK if a new contract fails to be secured.
The Italian firm has overseen the factory in Yeovil for around a decade, and stands as Britain’s last major helicopter facility. But now it seems the site could be at risk of closure with Chief Executive Roberto Cingolani quoted in The Times as saying “it’s getting difficult for us to keep this big plant alive”.
This comes after comments that he made to investors in November, citing 14 years of no UK Government contracts, and casting doubt over whether or not the site could continue to run without institutional collaboration.
He said: “Should this not happen, well, we should seriously consider why we keep a plant there.”
The following month, Mr Cingolani wrote to the defence secretary, John Healey, and threatened to scrap all investment in Britain, in a letter first reported by the Daily Telegraph.
This concerning news comes shortly after a strike in November that saw thousands of Leonardo workers walk out. Union reps and Leonardo bosses reached an agreement at the end of the month, with workers securing an eight per cent pay rise over two years.
A spokesperson for Unite the Union has urged the government to take action. They’re quoted as saying: “The Yeovil factory is the last remaining helicopter manufacturer [nationally] and it doesn’t have any helicopters to manufacture.
“The government for over a year now has been delaying the contract for which Leonardo is the only bidder, a contract worth about a billion pounds.
“It’s of vital importance that the government sign that contract to make sure the jobs are secure.”
As ever, the unrest at a large UK facility, and the prospect of 3,000 job losses, would no doubt could have a knock-on effect across the Leonardo supply chain, with an estimated 10,000 more workers impacted.
An MoD spokesperson has responded to the news, and is quoted as saying the department is “working flat-out” on an investment plan.
The statement added: “The UK’s new medium helicopter programme is ongoing and no final procurement decisions have yet been made. That outcome will be confirmed in due course.”
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