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Last Updated: Thursday, 12 June, 2003, 10:05 GMT 11:05 UK
BAE warning over Hawk contract
Workers at Brough
All 2,300 jobs at the plant are under threat
BAE Systems has warned it will shut its Brough factory with the loss of thousands of jobs if the government blocks a �10bn defence contract.

The government was poised to order 30 Hawk trainer jets made at the East Yorkshire plant - but it is now possible the deal will be put out to tender.

BAE fears that if the deal is then handed to a European competitor it would threaten 2,300 jobs at Brough.

The firm has already issued provisional redundancy notices to 470 staff at the site.

And BAE says if the order was lost to a rival bidder it would be mean British taxpayers subsidising foreign competitors.

Jobs are under threat
A BAE spokesman

A BAE spokesman said that although the plant is safe in the "short-term" it would close in the future if the order for 30 RAF jets is lost to a competitor.

He said: "I couldn't put an exact timescale on things but Brough wouldn't be closing in the short-term.

"However its long-term sustainability would be threatened.

"Jobs are under threat because it is difficult to see how we could get further export orders if we lost this contract."

The government has indicated a decision will be made on the deal by the end of June.

It is reported that Treasury officials are campaigning for the contract to be put out to tender.

Up to 470 jobs already under threat would be lost from the start of July if the decision goes against the company.

Last week up to 700 workers from the plant lobbied MPs outside parliament to put pressure on the government over its decision.




SEE ALSO:
BAE shares boosted by merger talk
09 Jun 03  |  Business
BAE workers lobby Parliament
05 Jun 03  |  Humber
BAE boss leaves with �1.5m
28 Mar 03  |  Business
BAE workers face job losses
21 Mar 03  |  England


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