 Workers are worried their pensions will be cut |
BAE Systems could be hit by strikes if it goes ahead with plans to cut retirement benefits to cover a �2.16bn ($3.44bn) black hole in its pension scheme. "The mood of our members is unmistakable. They will take industrial action to defend their pension rights," the T&G union's national organiser Jack Dromey was quoted as saying by The Times newspaper.
The possible industrial action comes after Europe's biggest defence contractor on Thursday reported a �616m full-year loss.
The company and union are due to hold talks next Tuesday, the papers said.
Contract trouble
BAE has seen its stock market value fall by two-thirds in the past year, as difficulties with its UK Ministry of Defence contracts have mounted.
Cost overruns on Nimrod patrol aircraft and Astute submarines slashed profits.
Although BAE has now agreed new terms of its contracts with the MoD, the changes have cost the firm �750m ($1.2bn; 1.1bn euros).
On Thursday, the group also announced that its chairman Sir Richard Evans would step down at the company's annual general meeting in 2004.
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