Union says General Electric has 'no coherent business case' for proposed job losses - The Rugby Observer

Union says General Electric has 'no coherent business case' for proposed job losses

Rugby Editorial 17th Jan, 2018   0

BOSSES at General Electric (GE) have been accused of not having a ‘coherent business case’ for 1,100 proposed job losses at its sites in Rugby and Stafford.

The plan, unveiled last month, is made up of 671 job losses from the Alstom business acquired only two years ago and 429 jobs from Power Conversion, also bought by GE, which are largely based at its Leicester Road Power Conversion site.

Unite, the UK’s largest union, has asked for clarity and greater transparency on the future of the four GE Power sites at Rugby and Stafford in meetings with the company’s management at the European works council in Paris this week.

Unite regional officer Zoe Mayou said: “Last month General Electric announced 1,100 job losses in the UK, but we are not satisfied that a coherent business case has been made for these cutbacks. There is managerial opaqueness surrounding the whole exercise.




“We are concerned that local management could be making pre-emptive decisions before the consultation guidelines have been agreed at the European works council.”

She said the future of highly skilled engineering and research staff – which she described as ‘vital for this country’s post-Brexit future’ – were at stake.


She added: “We also want to probe the extent of delays to government procurement decisions, such as the indecision about whether the £1.3bn Swansea tidal lagoon will go-ahead, which would provide work for GE Power as part of its Power Conversion business.

“We are aware GE wishes to commence consultations as soon as possible, but Unite is adamant this should not start until the details and process have been agreed at the European level.

“This is to ensure that proper consultation with detailed information can happen at the various GE sites.”

She insisted GE ensure it follows the correct consultation process and allows the details of its rationale to be analysed, and questions arising answered in full.

“Unite is committed to challenging GE as to why it is making these redundancies and what impact this will have on the economies and social fabric of local towns,” she added.

A GE Power spokeswoman said the proposals were ‘driven by challenges in the power market worldwide’, adding: “Increased pressure in the marketplace, coupled with intense competition and continuing pricing pressures, means GE Power has been working to eliminate costs, remain competitive and prepare for 2018 and beyond.”

The sites at Rugby and Stafford have a workforce of about 2,800, and make components for power stations and naval vessels.

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