Hundreds of workers in Scotland face an uncertain future as one of the countryâs biggest engineers plans to cut thousands of jobs.
Months of uncertainty lie ahead for nearly 600 workers at Rolls-Royce in Inchinnan, Renfrewshire, as the Derby-based engine-maker said it is to axe 2,500 of its 42,000 global workforce without identifying sections.
Before the pandemic, there were 1,300 workers producing engine parts including turbine blades at Inchinnan. This was reduced as the firm pushed for cost savings, eventually making 9,000 redundant over its global operations.
In 2021 the remaining 575 Inchinnan roles seemed to be safeguarded from compulsory redundancy for five years following an agreement with Unite the union, which it acknowledged today, but did not comment on further.
READ MORE:Â Rolls-Royce profits soar as international air travel returns
Last year Rolls-Royce said a gradual improvement in flight demand and higher defence spending by governments had boosted trading as it made "significant progress" in its recovery from the impact of the pandemic, aided by the cuts across its operations.
It looked to be working by August when shares soared by over 4% when strong profits provided evidence of recovery from "the dark days of the pandemic years".
The aircraft engine manufacturer posted underlying operating profits of ÂŁ673 million for the six months to June 30, up from ÂŁ125m it reported a year earlier. On a statutory basis, it swung to a pre-tax profit of ÂŁ1.4 billion from losses of ÂŁ1.8bn a year ago.
READ MORE:Â Rolls-Royce in Scottish jobs pledge as flight demand improves
Unite said it was âvery disappointedâ at the news and added: "This morning, Rolls-Royce released an official stock market announcement and subsequently briefed employees.
"However no additional clarity about the job losses or where they are likely to be made has been provided, despite announcing a figure of over 2,000 globally."
A spokesperson for Rolls-Royce confirmed the memorandum of understanding over jobs cuts in Scotland is in place, but also said it would be next year before its overhaul plans would be finalised.
READ MORE:Â Profit boost for Scottish Rolls-Royce aerospace workers
The spokesperson told The Herald: "The next phase of the organisational development will take place over the coming weeks through to January 2024, so we donât yet know where many of the proposed reductions will be based.
"We are working with our employee representatives throughout the process and will continue to keep them and our employees updated as we complete the proposed business design."
Tufan Erginbilgic, who was appointed as chief executive of Rolls-Royce, earlier this year, said the shake-up will make the engineering giant "a more streamlined and efficient" business.
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