Job losses confirmed at dockyard

Babcock said it needed to find ways of running the business more effectively

Hundreds of workers are to lose their jobs at Devonport Dockyard in Plymouth.

Owner, Babcock Marine, confirmed that up to 300 jobs were to go in the cost-cutting measure, after workers were briefed by managers.

Archie Bethel, Babcock Marine's Chief Executive, said the cuts were a result of the company needing to find ways of running the business more effectively.

The yard is Plymouth's largest business employer - with 5,000 staff. The cuts equate to 6% of the workforce.

Volunteers sought

Babcock said it was hoping to achieve most of the redundancies by voluntary means.

The jobs affected are mainly staff positions, along with some temporary workers involved in support activities.

A statutory 90-day consultation process will be carried out, with the redundancy programme being implemented before the end of June, the company said.

We are committed to improving the cost effectiveness of the business and to increasing the value for money that we deliver to our customers and to the taxpayer Archie Bethel, Babcock Marine's Chief Executive

Mr Bethel added: "This announcement is related to the delivery of efficiency improvements at Devonport following our review of operations at the yard. This identified ways of running the business more effectively.

"We are committed to improving the cost effectiveness of the business and to increasing the value for money that we deliver to our customers and to the taxpayer.

"We hope the reductions will be dealt with by voluntary means."

Babcock had warned previously that job losses were inevitable because of a reduction in the amount of work being done at the site which maintains, upgrades and fuels the Royal Navy's submarines and other vessels.

In February the company predicted as many as 600 jobs could be lost.

Viable future

Del Northcott, from the Prospect union, described the job losses as "disappointing", saying that less than six months ago the armed forces minister said there would be job gains at Devonport, not job losses.

But South Devon Conservative MP Gary Streeter added: "We were expecting some job losses.

"Of course in this economic downturn it may not be that easy to get any jobs, but I hope this is the end of the job losses at the yard for some time as the order books are looking pretty good."

It is regrettable that these jobs are to be lost Vivien Pengelly, Plymouth City Council leader

Councillor Vivien Pengelly, Plymouth City Council leader, described the skills of the shipyard workers as "unrivalled" and is calling on central government to "provide some certainty" over Devonport's future work programme.

She said: "While we understand that Babcock, like any other company, will always look to improve its productivity and competitiveness, it is regrettable that these jobs are to be lost.

"We recognise, though, that Babcock need to show that they can provide more cost effective support to the Navy in order to successfully secure future business.

"I hope government will recognise that and quickly provide some certainty over the yard's future work programme, particularly in relation to surface ship support, that gives the city some confidence that its employment levels will at the very least stabilise."

The redundancies are the latest in a series of cuts since 1987, when 13,000 people were employed at the site.

Babcock Marine bought the dockyard from Devonport Management Limited (DML) for �350m last year.

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