Union voices concern over pay-cut plans at Consett firm

Dec 2 2009 by Chris Knox, The Journal

AIRCRAFT factory bosses plan to make 73 redundancies and are considering moves which union bosses fear will lead to pay cuts for many of its remaining 270 staff.

The 340-strong workforce at Consett-based CAV Aerospace have been in discussion with the GMB union since September when the firm announced that it was planning to make cuts as a result of falling orders.

The company, which had already axed 100 staff in just over 12 months, said it planned to shed another 58 jobs by early 2010, but has been forced to increase this figure to “protect the long-term viability of the company.”

The GMB says a new pay structure could see more than 20 long-serving staff losing £400 per month in wages and the remainder losing up to £240.

The new structure, set to be introduced in the new year, will be based on job description rather than length of service.

Employees are concerned after moves were introduced including a pay freeze and the introduction of a four-day week after work was transferred to a factory in Cambridge.

GMB regional officer Steve Thompkins said that morale at the factory was low after 60 job cuts last May and 40 last November. He will meet CAV’s board of directors again on Monday.

He said: “It’s terrible that the company has dragged out these cuts over the last two years. Final decisions should have made months ago, rather than putting people through this process again so close to Christmas.”

CAV Aerospace, which was started in 1990 with a workforce of 10, now employs 600 people worldwide and supplies blue-chip aerospace firms with systems which protect business jets, military and smaller aircraft from the build up of ice.

Chief executive Owen McFarlane said: “In common with many other manufacturing companies, CAV Aerospace Limited has been adversely affected by the economic downturn.

“The drop in worldwide demand for aircraft components has meant that we have been forced to make some very difficult decisions in order to protect the company and maintain customer confidence.

“CAV Aerospace is continuing its consultations with the GMB regarding proposals, including redundancies and a proposed alternative pay grading. At this stage around 73 redundancies are proposed and, as part of that process, we have invited volunteers.

“These steps we are being forced to take are solely in order to protect the long-term viability of the company.

“We must have the most effective working methods in place and a stable cost base to remain competitive and ensure we are in the best possible place to benefit once conditions improve.”