Rolls-Royce axes jobs as sales rise

UK aerospace giant Rolls-Royce is facing the threat of strike ballots after one of its unions accused the company of a cover up over plans to axe 2,000 jobs. The plans come at a time of rising profits and healthy order books for the company. Manufacturing, science and finance union MSF said industrial action seemed "inevitable" and accused Rolls-Royce of trying to conceal cutbacks by issuing redundancy notices in small groups. The union claimed 2,000 jobs could be lost unless alternatives to redundancies could be agreed, including 1,000 in Derby with more in Bristol, Coventry, Nottingham, and Sunderland. The union is planning a series of mass meetings to discuss strike ballots.

MSF national officer John Wall said: "Our members are astonished that Rolls-Royce is seeking to axe jobs when the order book is full and the company is profitable. All the plants are at full stretch and contractors will have to replace the redundant workers, all to put a couple of pence on the dividend." Rolls-Royce has denied the cover-up claim saying the job cuts had been previously announced.

In early March Rolls-Royce published its 1999 results, which showed pre-tax profits up10.8% to £360 million. Sales were 9.7% ahead of the previous year at £4,744 million. The company also revealed that its order book stood at £11.5 billion -11% up on1998. A further £1.7 billion of orders had been announced but not signed at the end of the financial year. And of course shareholders did well with a 10.7% hike in the dividend paid.

Between 1998 and 1999 the average number of employees grew from 40,300 to 49,600, largely as a result of the takeover of Vickers, but there was an underlying reduction of 1,600 in the workforce.

Sales from continuing operations 4,744 4,326 +9.7

Profit before tax 360 325 +10.8

Dividend 7.25p 6.55p 10.7