APPENDIX 8
Memorandum submitted by Rolls-Royce Joint
Work/Staff Trade Unions, Derby Sites
The Joint Works and Staff Trade Unions who represent
the Derby Sites of Rolls-Royce plc are deeply concerned by the
implications following the announcement by Rolls-Royce on 8 November
2000 that it is undertaking a major restructuring and rationalisation
exercise.
During his address on 8 November John Rose,
our Chief Executive, also stated he believed that, to be the world's
best, Rolls-Royce would need to out-source 85 per cent by value
of its workload—currently we out-source 65 per cent. The
Company have looked for possible opportunities and Joint Ventures
but believe the maximum it could off-load is 75 per cent due to
world capacity constraints. This 10 per cent increase represents
a 30 per cent reduction of our Manufacturing base in the UK.
The Company have stated on many occasions that
to improve its cost competitiveness it needs to have a better
balanced "Make-Buy" strategy in which it directs investment
into those components in which it excels and which give the highest
added value.
The Trade Unions' view is that whilst accepting
some of the Company arguments it is essential that we maintain
and retain the Skills of our workforce, and retain the Technology
and the Design Capability within the UK.
Recent announcements by the Company bring into
question the retention of said Skills and Capabilities. The movement
of Great Design and Manufacture from Bristol to the USA, and the
closure of the Composite Facility at Derby are just two examples
where the Company are exporting jobs by Function to foreign-owned
companies in foreign states.
The Closure of the Composite Manufacturing Facility
at Derby highlights to the Trade Unions the Company's lack of
Investment in our Skills and Manufacturing Bases. The work done
at our Derby Site is being transferred to an Austrian Company,
Fischers, who we are told by Rolls-Royce are the world leaders
in composite Component Manufacture. However recent reports which
have come into our office bring into serious doubt this statement
and they suggest that if the work was to be transferred today
Fischers do not have either the Skills to do it, or in fact the
Plant and Equipment to carry out the task.
What this also highlights to the Trade Unions
is that Rolls-Royce are entering into deals which not only have
the effect of exporting jobs by Function but which also reduces
our UK Manufacturing Base.
The Trade Unions believe that this type of give-away
affects all Rolls-Royce employees, not just those in Derby. If
we cannot produce the components in line with Engine Delivery
Dates it ultimately affects the Company's ability to win new orders
and thereby safeguard not only UK Rolls-Royce employees' futures
but also the futures of second and third tier Suppliers.
16 January 2001
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