Strike vote over pay cut claim
FIRM ACCUSED BY UNION OF BID TO CUT WAGES BY UP TO £3K
A UNION has accused management at an aeroplane part manufacturer of wanting to cut staff wages by up to £3,000.
Unite said it is balloting staff on potential strike action at SPS Technologies, in Leicester.
It has accused the business of wanting to make changes that would see staff lose what it claims could be between £2,500 and £3,000 each from their salaries.
The union said about 200 of the Thurmaston workforce were made redundant in the summer, with the remaining 280 now allegedly facing reductions to overtime pay, sick pay, paid breaks, shift premiums and other terms and conditions.
The Mercury contacted SPS and spoke to someone in its HR department who said “there is no comment”, before putting the phone down.
The business makes bolts, pins, screws and nuts designed to work under high-stress conditions in aircraft engines and airframes.
It is owned by jet engine component manufacturer Precision Castparts Corp, which has its headquarters in Portland, Oregon. The Mercury has asked it for comment.
Two years ago, there were 580 staff at the Barkby Road site. In a statement, Unite said of the alleged salary cut: “Losing such a significant amount will result in workers being unable to pay their mortgages and other essential bills.
“Staff are concerned the cuts may force them to use payday loans, look for second jobs or find new work.
“The strike ballot, which closes on December 14, could result in SPS’s operations grinding to a halt.”
Unite regional officer Lakhy Mahal claimed: “Not content with firing nearly half of its loyal workforce in the middle of a pandemic when they could have been furloughed, SPS is now attempting to make deplorable attacks on the pay and conditions of those who remain.
“SPS is using the pandemic as an excuse to fire and rehire staff on vastly inferior contracts and wages.
“These opportunistic changes will have hugely negative impact on our members’ financial security.
“Anger is at such a high level that a strike ballot has been called.
“The situation is destroying any remaining trust the workforce had in their employer.
“The behaviour of SPS towards its dedicated staff, who worked right through the first lockdown to ensure the company completed its orders, is simply wrong and will be fought by Unite every step of the way.
“I strongly urge SPS to stop these attacks, which are causing the firm great reputational harm, before this dispute escalates further.”
Recently posted accounts for SPS Technologies LTD, for 2019, showed an operating loss of £1.3 million, compared with a loss of £4.4 million a year earlier.
Sales were £47.3 million, which was slightly up on the previous year.
The accounts showed that the company had net assets last year of £46.8 million, down from £62.2 million, and a pension liability of £31.1 million – up almost £8 million.
The company claimed in the accounts: “The company is committed to recruit and retain a highly skilled and loyal workforce to meet the continuous improvement demands of our customer base.”
But it said: “The global impact of the pandemic has had an unprecedented reduction in global air travel, leading to significant reduction in our order book.
“The forecasted future business activity is insufficient to sustain current employment levels and the company has reduced its workforce to match the drop in future demand.”