24.10.16
Reassurances sought over Derby jobs as Bombardier to axe 7,500 globally
Rail union RMT has sought reassurances from Bombardier after the company announced it plans to cut 7,500 jobs globally.
As a result of the cuts, the firm expects to achieve recurring savings of approximately $300mby the end of 2018.
It said these savings would be supported by workforce optimisation, site specialisation, and streamlining administrative and non-production functions in its aerospace and rail businesses.
Alain Bellemare, Bombardier’s president and CEO, said: “When we launched our turnaround plan last year we committed to transforming our company; to reduce costs, to leverage our scale and to become more efficient in all our operations, and that is exactly what we are doing.
“While restructuring is always difficult, the actions announced are necessary to ensure Bombardier’s long-term competitiveness and position the company to continue to invest in its industry leading portfolio while also deleveraging its balance sheet.”
Bombardier has approximately 3,400 rail staff in the UK, about half of whom are employed in its manufacturing plant in Derby. The company announced plans to cut 44 permanent jobs at its UK rail sites earlier this year.
RTM contacted Bombardier for a comment on the cuts. A spokesperson confirmed that two-thirds of the total would be in Bombardier Transportation, the division that builds and maintains trains and track systems. However, she added that, due to recent contract wins, there was likely to be “minimum effect” to the UK workforce.
Mick Cash, general secretary of the RMT, said the union was seeking reassurances from Bombardier regarding job cuts at the Derby site.
He added: “We need to end the stop start attitude to train building in the UK and that means ensuring that new rail fleet contracts are placed by the train operating companies with the skilled workforce at the Derby plant to guarantee a safe and secure future.”
Bombardier also said it expected the cuts would be partially offset by key growth programmes and major new rail contracts.
The company currently holds major contracts, including supplying Class 387 vehicles for Great Western Railway, and a new fleet for Abellio to deploy on the East Anglia franchise. It is also currently constructing the trains for Crossrail and expects to be in contention for HS2’s high-speed trains.
Bombardier is the latest company to announce job cuts, after DB Cargo said it plans to cut up to 900.
(Image c. Chris J. Dixon)
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