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divdiv class=story-body readability=107 span class=story-date#13; span class=date6 November 2013/span#13;span class=time-textLast updated at /spanspan class=time10:17 ET/span#13; #13;/span#13;#13; #13;#13;#13; #13; #13; #13; #13; p class=introduction id=story_continues_1BAE Systems is to cut 1,775 jobs at its yards in Scotland and England and end shipbuilding altogether at Portsmouth./p#13; pThe firm said 940 staff posts and 170 agency workers will go at the Portsmouth site, which will retain repairs and maintenance work./p#13; pSome 835 jobs will be lost at yards in Govan and Scotstoun, on the River Clyde in Glasgow, and Rosyth in Fife and at the firm's Filton office, near Bristol./p#13; pThe cuts follow a drop in work after the end of aircraft carriers work./p#13; pBAE Systems employs a total of 4,400 people in shipbuilding in the UK, 1,200 in Portsmouth and 3,200 across Govan, Scotstoun, Rosyth and Filton./p#13; pThe company said it had made the cuts because of a significant drop in demand./p#13; !-- Embedding the video player --#13;!-- This is the embedded player component --#13;#13;#13; #13; #13;#13;#13;#13;!-- wwrights check --#13;!-- Empty country is used on test environment --#13;#13;#13;#13;div class=videoInStoryB readability=1#13; div id=emp-24834027-158845 class=emp#13; #13; #13; noscript#13; div class=warning readability=1#13; img class=holding src=http://news.bbcimg.co.uk/media/images/70943000/jpg/_70943796_govan_worker.jpg alt=Worker at a BAE shipyard in Glasgow/pstrongPlease turn on JavaScript./strong Media requires JavaScript to play./p#13; /div#13; /noscript#13; #13; !-- embedding script --#13; #13; /div#13; !-- companion banner -- #13; #13; #13; #13; !-- END - companion banner --!-- caption --p class=captionWorkers at the BAE shipyards in Glasgow react to the announcement/p#13; !-- END - caption --#13; #13; #13;#13;/div#13;!-- end of the embedded player component --#13;#13;!-- Player embedded -- pThe defence contractor and the Ministry of Defence (MoD) have together announced measures which they hope will offset the effect of the job cuts./p#13; pAmong the plans are more than £100m of investment to expand the dockyard at Portsmouth./p#13; pThree new ocean-going Offshore Patrol Vessels for the Royal Navy will also be built at BAE's Govan and Scotstoun yards in Glasgow./p#13; pThis will help sustain shipbuilding at the yards until work begins on the Type 26 Global Combat ships. /p#13; pBAE, which heads a consortium that includes Babcock and Thales UK, said it had agreed changes to the Queen Elizabeth-class aircraft carrier contract it signed with the MoD in 2009. /p#13; div class=story-feature wide readability=6#13; a class=hidden href=#story_continues_2Continue reading the main story/a !-- pullout-items--#13; #13; !-- pullout-body--#13; pI'm told that Govan has two advantages over Portsmouth - a lower cost base and a partnership with the Scotstoun shipyard on the other side of the Clyde./p#13; pTory strategists point out that it's hardly in their political interests to save a Scottish shipyard and part close an English one./p#13; pNevertheless, it's clear that there can be no decision on something as significant as the building of warships without a great deal of political calculation./p#13; pAs I reported yesterday, one well-placed source told me that the government was acutely conscious of the politics of the Clyde and did not want to give Alex Salmond a gift a little less than a year ahead of the independence referendum./p#13; #13; !-- pullout-links--#13; ul class=links-listlia href=/news/correspondents/nickrobinson/Read more from Nick/a/li#13; /ul/div p id=story_continues_2This would see the consortium's fee move to a 50-50 risk share arrangement which would provide greater cost performance incentives. /p#13; pA statement released by BAE Systems said: Under these proposals, shipbuilding operations at Portsmouth will cease in the second half of 2014. /p#13; pSubject to consultation, Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow. /p#13; pThe company remains committed to continued investment in the Portsmouth area as the centre of its Maritime Services and high-end naval equipment and combat systems business. /p#13; pBAE said it had agreed with the MoD that Glasgow would be the most effective location for the manufacture of the future Type 26 ships./p#13; pThe company proposes to consolidate its shipbuilding operations in Glasgow with investments in facilities to create a world-class capability, positioning it to deliver an affordable Type 26 programme for the Royal Navy, BAE said./p#13; pIt said the cost of this restructuring would be borne by the MoD. /p#13; pBAE said it would now begin consultation to cut 1,775 jobs to result from these restructuring proposals./p#13; !-- Embedding the video player --#13;!-- This is the embedded player component --#13;#13;#13; #13; #13;#13;#13;#13;!-- wwrights check --#13;!-- Empty country is used on test environment --#13;#13;#13;#13;div class=videoInStoryC readability=1#13; div id=emp-24831829-158846 class=emp#13; #13; #13; noscript#13; div class=warning readability=1#13; img class=holding src=http://news.bbcimg.co.uk/media/images/70946000/jpg/_70946268_70946267.jpg alt=Philip Hammond/pstrongPlease turn on JavaScript./strong Media requires JavaScript to play./p#13; /div#13; /noscript#13; #13; !-- embedding script --#13; #13; /div#13; !-- companion banner -- #13; #13; #13; #13; !-- END - companion banner --!-- caption --p class=captionPhilip Hammond told the Commons the job cuts were regrettable but inevitable/p#13; !-- END - caption --#13; #13; #13;#13;/div#13;!-- end of the embedded player component --#13;#13;!-- Player embedded -- pThis would see 940 posts go in Portsmouth in 2014 and 835 across Filton, Glasgow and Rosyth, through to 2016. /p#13; pThe statement added: The cost of the restructuring will be borne by the Ministry of Defence./p#13; pThe implementation of these restructuring activities will sustain BAE Systems' capability to deliver complex warships for the Royal Navy and secure the employment of thousands of highly skilled employees across the UK./p#13; pThe MoD confirmed that it would commission three new ocean-going Offshore Patrol Vessels to play a key role in counter-terrorism, counter-piracy and anti smuggling operations./p#13; pThese will be built , it said, at BAE's Govan and Scotstoun yards in Glasgow./p#13; pWork on the new vessels is due to begin next year with the first ship being delivered to the Royal Navy in 2017. /p#13; span class=cross-head'Vital skills'/span#13; pThe ships are expected to replace the current, smaller River Class vessels which have been policing the UK's waters since 2003. /p#13; pDefence Secretary Philip Hammond said: This deal will provide the Royal Navy with three brand new maritime patrol vessels with a wide range of capabilities which will support our national interests and those of our overseas territories. /p#13; pThis is an investment not only in three ships but in this country's warship building industry. It prevents workers standing idle and sustains the vital skills needed to build the planned Type 26 frigate in the future./p#13; div class=story-feature wide readability=12#13; a class=hidden href=#story_continues_3Continue reading the main story/a h2Analysis/h2#13; !-- pullout-items--#13; #13; !-- pullout-body--#13; pIt has been obvious for years that there is no longer enough work for BAE's four shipyards. /p#13; pBarrow in Furness is safe because it is the only site that can make submarines, but Portsmouth, Govan and Scotstoun on the Clyde have too much capacity between them./p#13; pAt the moment the yards are busy working on the Royal Navy's two new aircraft carriers, but that work will end possibly two whole years before work is due to start on the Navy's new Type 26 frigate. /p#13; pThat is still on the design board and no orders have been placed, but current plans are to build 13 ships over a long time period./p#13; pThat just won't provide enough work for three shipyards. Not only that, but there is going to be another defence review in 2015./p#13; pAs one expert told me, the idea that we are suddenly going to start building a large number of surface ships for the Royal Navy is a fantasy./p#13; #13; !-- pullout-links--#13; ul class=links-listlia href=/news/business-24835551Shipyards face up to the inevitable/a/li#13; /ul/div p id=story_continues_3Mr Hammond is also announcing that more than £100m will be invested in Portsmouth. /p#13; pThe money will be used to expand the dockyard to ensure it is ready for the arrival of HMS Queen Elizabeth and HMS Prince of Wales as well as the Type 45 destroyers which are based in Portsmouth. /p#13; pThe defence secretary added: I am also pleased to announce additional investment in Portsmouth Naval Base to prepare for the significant increase in tonnage as the home port for the Royal Navy's aircraft carriers and destroyers./p#13; pThe MoD said under the terms of the new arrangements that Portsmouth will maintain its proud maritime heritage as the home of much of the Royal Navy's surface fleet and the centre of BAE Systems ship support and maintenance business./p#13; pSpeaking at Prime Minister's questions in the Commons, David Cameron said his thoughts were with the workers affected by these extremely difficult decisions./p#13; pHe added: We want our Royal Navy to have the best and most modern ships and the best technology. /p#13; pThat means we will go on building warships on the Clyde, we will be announcing three new offshore patrol vessels, keeping that yard busy rather than paying for it to remain idle as the last government proposed./p#13; pIn Portsmouth, yes there will be job reductions, but there are many more people involved in ship servicing than in ship building, so the workforce will go from 12,000 to 11,000./p#13; pLabour's Shadow Defence Secretary Vernon Coaker said it was a difficult day for the shipbuilding industry and his first thoughts were with those facing job losses./p#13; span class=cross-headReferendum issue/span#13; pHe added: Two things are clear. Firstly, the MoD is to meet the cost of restructuring the naval shipbuilding business across Britain. We need to see all of the detail about how much that will cost and how the cost will be met. /p#13; pSecondly, Britain must retain a sovereign shipbuilding capability. None of us want to see Scotland leave the United Kingdom, but we need clarity from the government about what safeguards are in place to meet all eventualities after next year's referendum./p#13; pWe now need to concentrate on ensuring the unique skills and abilities of the shipbuilding workforce across the UK are maintained and developed, and I look forward to hearing details about how the government can support that./p#13; pScotland's Deputy First Minister Nicola Sturgeon told the BBC she was relieved Govan was not closing, but said the 800 job losses were a devastating blow for the Clyde and Scottish economy./p#13; !-- Embedding the video player --#13;!-- This is the embedded player component --#13;#13;#13; #13; #13;#13;#13;#13;!-- wwrights check --#13;!-- Empty country is used on test environment --#13;#13;#13;#13;div class=videoInStoryC readability=1#13; div id=emp-24836235-158847 class=emp#13; #13; #13; noscript#13; div class=warning readability=1#13; img class=holding src=http://news.bbcimg.co.uk/media/images/70942000/jpg/_70942379_70942378.jpg alt=Jamie Webster, Confederation of Shipbuilding and Engineering Unions:/pstrongPlease turn on JavaScript./strong Media requires JavaScript to play./p#13; /div#13; /noscript#13; #13; !-- embedding script --#13; #13; /div#13; !-- companion banner -- #13; #13; #13; #13; !-- END - companion banner --!-- caption --p class=captionUnion convener Jamie Webster: We are not going to throw the baby out with the bathwater/p#13; !-- END - caption --#13; #13; #13;#13;/div#13;!-- end of the embedded player component --#13;#13;!-- Player embedded -- pThe Scottish government will be working very closely with the company and with the trade unions, firstly to minimise the number of job losses, but also to work very hard with those affected to help them into alternative employment, she said./p#13; pReacting to news that the Glasgow yards would build the new Type 26 ships, Ms Sturgeon said: The Clyde is the best place to build these ships - no disrespect at all to Portsmouth, I feel heart sorry for people in Portsmouth affected, just as the people in the Clyde are affected by job losses./p#13; pBut the investment that we've seen in the Clyde yards in recent years, the skill mix of the workers in the Clyde, make the Clyde the best place to build these ships - there's no doubt about that. /p#13; pDavid Hulse, GMB national officer and chair of the Confederation of Shipbuilding and Engineering Unions' shipbuilding national committee, said the announcements had been part of a devastating day for the UK shipbuilding industry./p#13; pWe have arranged a two-day meeting with the company at Farnborough next Monday and Tuesday that will be attended by officers and shop stewards from all the yards and all the unions, he said. /p#13; pThis meeting will examine in detail the business case and all aspects for scheduling work in the yards to complete building the carriers, starting work on the Type 26 ships and any other work./p#13; !-- Embedding the video player --#13;!-- This is the embedded player component --#13;#13;#13; #13; #13;#13;#13;#13;!-- wwrights check --#13;!-- Empty country is used on test environment --#13;#13;#13;#13;div class=videoInStoryC readability=1#13; div id=emp-24836962-158848 class=emp#13; #13; #13; noscript#13; div class=warning readability=1#13; img class=holding src=http://news.bbcimg.co.uk/media/images/70943000/jpg/_70943276_70943274.jpg alt=Mike Hancock MP /pstrongPlease turn on JavaScript./strong Media requires JavaScript to play./p#13; /div#13; /noscript#13; #13; !-- embedding script --#13; #13; /div#13; !-- companion banner -- #13; #13; #13; #13; !-- END - companion banner --!-- caption --p class=captionPortsmouth South MP Mike Hancock says the job losses would sweep away 500 years of tradition/p#13; !-- END - caption --#13; #13; #13;#13;/div#13;!-- end of the embedded player component --#13;#13;!-- Player embedded -- pThe independent MP for Portsmouth South, Mike Hancock, said ending shipbuilding at Portsmouth would be a difficult decision to reverse./p#13; pHe added: The expertise is very, very much dedicated to shipbuilding. And once they disperse the workforce in various parts of the south of England I don't think it's going to be easy to put that back together. /p#13; pI think the government are making a big mistake for the future of ship building in the UK, particularly military shipbuilding./p#13; pBBC Scotland understands that workers at BAE's Scotstoun and Govan yards in Glasgow have been sent home for the day. /p#13; pThey were told by management there would be about 800 jobs lost in Scotland but no breakdown was given./p#13; pWorkers who left the yard said they were worried and disappointed, but that the announcement was not unexpected./p#13; div class=comment-introduction readability=-49#13; p class=introductionWill you be affected by any job cuts at BAE Systems shipyards? Send your comments using the form below./p#13; #13;/div#13; #13; #13; #13; #13; /div/divbrbrcentera href=http://www.wizardrss.comPowered By WizardRSS.com/a | a href=http://www.wizardrss.comFull Text RSS Feed/a | a href=http://www.amazon.com/RFID-Blocking-Cards-Identity-Protector/dp/B00CJHZLEWRFID/a | a href=http://www.wpzonbuilder.comAmazon Affiliate/a/center