British trade union demands meeting over BAE-EADS merger

(Image: EADS website)

"Unite is demanding an urgent meeting with BAE Systems, EADS and government ministers ... following (the) shock announcement that the two companies are in talks over a possible merger," it said in a statement.

The union added that it wanted British business secretary Vince Cable and defence minister Philip Hammond to attend any talks.

BAE Systems and EADS revealed on Wednesday that they were in merger talks to create a global aerospace and defence leader that would compete more effectively against rival US giant Boeing.

Unite national officer Ian Waddell said that the merger news "has come totally of the blue for the workforce and our first priority will be to safeguard jobs and skills."

The deal has sparked concern over cost-cutting measures and potential job losses at the two groups. BAE currently employs about 93 500 people worldwide, while EADS has almost 135 000 staff.

Waddell added: "Any merger will need political approval in Europe and the United States. Questions need to be asked about when the UK government knew about this and what it will do to safeguard jobs.

Seeking urgent meeting

"We will be seeking an urgent meeting with Vince Cable and Philip Hammond and demanding guarantees from the company that a merger will not result in slashing jobs to cut costs.

"The new company would be the largest manufacturing company in the UK, employing tens of thousands of people in critical defence manufacturing and at Airbus.

"It is vital that the government ensures these jobs are protected in the UK before approving the merger."

The proposed deal would meanwhile give the upper hand to the European Aeronautic Defence and Space Company, or EADS, which would own 60% of the enlarged company. BAE would hold the remaining 40%.

The British government, which has a golden share in BAE that allows it to veto deals that are not seen to be in the public interest, has already said it would seek to ensure that the nation's interests are "properly protected".

BAE is an expert in defence, security and the military technology, whereas the majority of EADS's work is commercial -- and includes Airbus passenger jets.

London-listed BAE produces Astute nuclear-powered submarines and is the largest supplier of land vehicles to the US army.

Source: AFP via I-Net Bridge