CELTIC nation governments have joined forces to demand "urgent intervention" to rescue the aerospace engineering and civil aviation sector following fears of 2,500 job losses in Scotland alone.

Unite Scotland and the First Minister, Nicola Sturgeon, are signatories to a letter sent to Boris Johnson appealing for action to preserve the sector which has been hit hard by the coronavirus pandemic.

READ MORE: Celtic nations' aviation crisis appeal to PM - the letter in full

The leaders of devolved administrations Scotland, Northern Ireland and Wales have signed a new letter calling for the immediate establishment of a UK Aerospace Taskforce in order that government, business and trade unions collectively work together to support businesses, workers and communities.

A Unite Scotland-commissioned report  produced by the nation’s leading economic research institute Strathclyde University’s Fraser of Allander Institute (FAI) in July, estimated that the total impact of the 1,225 proposed job losses at various companies including spill-over effects is associated with a £185m loss in Gross Value Added (GVA) and a decrease in employment of 2,530 across the Scottish economy. 

The findings followed a spate of redundancy consultations and voluntary severance schemes at Rolls Royce (Inchinnan), GE Caledonian, Spirit Aerosystems and Wyman Gordon. 

The Herald:

The union has been demanding the furlough scheme for the industry is extended beyond the UK Government's end date of October 31, as well as an end to the "fire and rehire" proposals for Scottish airport workers.

In June, the Scottish Government established an Aerospace Response Group with the direct participation of Unite along with industry, trade unions, central and local government with the aim of preserving Scotland’s aerospace manufacturing and R&D capability, and safeguarding jobs.

The measure was announced in response to Rolls Royce announcing 700 jobs were to go at its Inchinnan factory.

The joint letter acknowledges that it will take three to five years for the sector to return to 'pre-crisis levels' and that 'urgent intervention' by the UK Government is essential because many of the tools required to support the sector throughout and beyond the ongoing Covid-19 pandemic are not devolved.

First Minister, Nicola Sturgeon, said: “As we approach the closure of the furlough scheme at the end of October, there is a real possibility of significant job losses across the UK. We have repeatedly called for the UK Government to reconsider its position and to extend the scheme, especially for sectors that have been particularly hard-hit like aerospace. Recognising where key economic powers lie, we need to see sector-specific approaches for these parts of the economy from the UK Government or the long-term impact will be severe."

“The Scottish Government has established an Aerospace Response group to help address the significant challenges the sector is facing as a result of COVID-19. We would welcome the opportunity to collaborate with other governments as part of a UK-wide Aerospace Taskforce, and I call in the UK Government to recognise the scale of the problem and to establish this without further delay.”

Unite says Scottish airport workers are disproportionately affected by planned job losses compared to the rest of the UK.

Pat Rafferty, Unite Scottish secretary, added: “Unite is delighted to bring together the leaders of the devolved administrations in Scotland, Northern Ireland and Wales in a joint initiative to safeguard jobs in the aerospace sector. Tens of thousands of highly-skilled jobs and those supported by the aerospace sector in the supply-chain are on the brink of being lost forever.”

“It’s clear that many of the measures required to support the sector reside with the UK Government, which is why we are collectively asking the Prime Minister to immediately establish a UK Aerospace Taskforce to coordinate support."

"In Scotland, we have an unfolding crisis in the sector following a spate of redundancies which risks a £185m blow to the economy. We hope the Prime Minister responds positively to this initiative and that every possible tool will be used alongside measures being enacted by the devolved administrations in order to preserve jobs, and to sustain the aerospace sector throughout and beyond the Covid-19 crisis.”

British Airways chief executive Alex Cruz said this week that the airline may never be the same again after the coronavirus pandemic and that the industry faced permanent structural change from the worst crisis in aviation history.

He defended job losses and pay cuts at the airline saying that BA was still fighting for survival. It flew only 187,000 passengers last week compared with 1 million during the same period in 2019, and was operating only 25-30% of its schedule.