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Bosses in line for big bonuses
BOSSES at a yard whose closure could hit jobs in South Tyneside are in line for big bonuses.
There are fears over the future of BAE Systems in Portsmouth, which is handling the £6bn contract to build the aircraft carriers, Queen Elizabeth and Prince of Wales.
But A&P Tyne, Hebburn, which is making sections for the landmark defence contract, could suffer if the Portsmouth yard is axed.
Such a closure could hit more than 30,000 jobs, both directly and in the supply chain, including the South Tyneside yard.
There was anger late last year when part of a £55m contract was switched from the Hebburn facility to BAE Portsmouth, sparking more than 90 redundancies at A&P.
Now there are reports BAE Systems has received a tax rebate of almost £200m, which could result in big windfalls for the company’s top bosses, such as chief executive Ian King, US chief Linda Hudson and finance director Peter Lynas.
The news comes at a time when BAE is set to cut 3,000 jobs across its sites, including 217 of its 650 posts at its Newcastle base.
BAE has already cut more than 15,000 jobs across the world over the last two years as part of a drive to boost its competitiveness.
BAE Systems has so far refused to address fears about the closure of the Portsmouth yard, which could also hit the public purse due to an agreement signed between BAE and the Ministry of Defence guaranteeing the company work for the next 15 years.
It is possible such a closure could cost the taxpayer between £400m and £600m.
The group is expected to report a fall of 10 per cent in its underlying earnings last year, prompted by pressure on defence spending in the UK and US.
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Tuesday 22 May 2012
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