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Doosan Babcock Job Cuts Show Government 'Incompetence'

Wednesday, December 7, 2016

Engineering group’s tragic decision to slash hundreds of roles just before Christmas could have been avoided, claims union.

Doosan Babcock’s surprise decision to chop hundreds of job cuts across the county [1] is because UK companies are treated unfairly by the Government according to GMB, the engineering union.

The group announced plans to cut 470 jobs across the UK – mainly in Scotland, but also in the West Midlands, Gateshead and Sussex. [2].

Doosan Babcock provides services to the energy, pharmaceutical and petrochemical sectors.

The move is another crushing blow for British manufacturing which has seen 385,500 Jobs lost since 2007. [3]

But GMB says if the group had been given the chance to expand into the growing biomass energy sector, their latest cuts could have been avoided.

Phil Whitehurst, GMB National Officer, said:

“What is so tragic about these job cuts is that Doosan Babcock have the capacity and specialism needed to forge a path in the heavily in demand energy from waste (EfW) and biomass power business in the UK.

“But the fact their investment team didn’t have the confidence to do so is due to a shocking disparity in the tendering process between UK and non-UK companies in the sector.

“This has allowed foreign companies to dominate the market.

“It’s a sad indictment that none UK companies are dominating the UK new build energy market, manufacturing key project components in lesser economies in Eastern Europe and then utilising and exploiting posted workers to construct them in the UK, this in turn has resulted in an aggressive form of social dumping of the UK labour pool all in the name of huge profits.

“This incompetent Government, and the ones before it, have done nothing to put UK businesses on a level playing field by mandating that all energy and infrastructure projects are built utilising UK Collective Agreements such as the National Agreement for the Engineering Construction Industry (NAECI).

“Only when this is done will companies like Doosan Babcock be able to compete in the UK.

“Until then, we will see more devastating job losses like these.”

Notes to editors:

Contact: Phil Whitehurst on 07079 68338810 or at paul.whitehurst@gmb.org.uk

[1] http://www.bbc.co.uk/news/uk-scotland-scotland-business-38224153

[2] Breakdown of cuts:

270 in Renfrewshire (140 production, 130 back office)

70 in Crawley, West Sussex

20 in Gateshead

25 in Tipton, West Midlands.

The rest will be spread across other sites in the UK.

[3] http://www.gmb.org.uk/newsroom/manufacturing-jobs-lost-since-2007

 

 

 

 

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