by Wes Lane September 5th, 2011
The controversial decision by the government to award the contract to build 1,400 train carriages to German manufacturer Siemens rather than Canadian Derby-based Bombardier could cost around 10,000 jobs across the UK. The choice to give Siemens the £1.5 billion contract has already resulted in some 1,400 jobs at the Derby plant being axed. This is around half the workforce.
According to union leaders, the decision will have a knock on effect for workers at another 831 companies including business services, electrical firms, design firms and engineering companies. Unite’s Tony Woodley has accused the government of being more interested in making sure that it does not lose face in Europe rather than try to save British workers’ jobs.
He said that as the country faces a double dip recession it was important that the government did everything in its power to try and protect jobs and that it has the power and the duty to reverse the decision to use Siemens.
Bombardier is the UK’s last remaining train builder and has been operating in Derby for 150 years. The firm’s Canadian owners are currently reviewing operations in the UK after losing out to the Germans. Although the firms to be hit by the decision have not been named it is understood they are based in towns and cities across the UK such as Belfast, Nottingham, Newcastle, Edinburgh and Birmingham.
Union leaders and Bombardier employees are due to arrive in London on Wednesday to confront the Transport Select Committee and Parliament over the decision.