Perth business left "unscathed" after Defence Review

Oct 22 2010 by Denis Brown, Perthshire Advertiser Friday

A PERTH defence contractor is sticking to its guns, insisting that collateral damage will be confined to 30 managerial job losses.

Almondbank-based Vector Aerospace Component Services issued a statement two days ago confirming deployment of cost-shaving restructuring that will see 30 heads roll on redundancy packages.

The former MoD DARA facility, taken over by Vector in 2008, employs 300 staff, one who told the PA last week that up to 100 jobs could be in the firing line.

The anxious worker claimed that Lynx and Sea King helicopters were being scrapped under the Strategic Defence Review (SDR), meaning Vector would lose servicing contracts and have to axe more staff.

But while the fine print of the just released SDR is yet to be dissected, a process that could take months, the consensus is that Vector has emerged relatively unscathed.

Yesterday, SNP MP for Perth and North Perthshire, Pete Wishart – at Westminster probing SDR findings – said on the surface, the review now appeared to be quite benign for Vector.

“There are going to be less government orders for helicopters but this does not appear to impact adversely on Vector,” he said.

“I spoke to Vector chiefs yesterday and they confirmed the SDR was not as bad as had been feared.

“I hope that this will provide reassurances to staff during the current restructuring process.

“The SDR small print is still to be worked out but it’s a wait and see scenario as it could take weeks or months.”

A Vector spokesman said predicted axing of Lynx and Sea King choppers had been in Vector’s sights since taking over Almondbank and had been factored into business planning.

“Yes, the two helicopter contracts will be phased out – but not next week, they will be phased out over a period of years,” he said.

“Two valuable defence contracts with HS Claverham were renewed last month so shop floor jobs at Almondbank are safe.”

He said the company remained committed to the future of the plant, which was performing vital work supporting UK military helicopter fleets, including Chinooks, currently active in war zones.

Vector Aerospace director, Ian Burnett, said restructuring – involving loss of 30 white collar jobs, plus administrative and support roles – was essential to maintain viability against a backdrop of challenging times.

“Naturally we regret any loss of jobs here at Almondbank but we must shape our business to be as lean and flexible as possible,” he said.

After a story based on a tip-off suggesting up to 100 jobs were in jeopardy ran in last Friday’s PA, bosses fired a memo to Almondbank staff, warning them not to divulge company matters to external sources.

But despite the red card, another disgruntled worker contacted the PA, saying he concurred with the story’s content and that staff morale was now critical.

“The implications are that once redundancies start rolling, it’s a can of worms for everybody,” he said.

“Management are keeping us in the dark, morale here has never been so low and we feel undervalued.

“What really disgusts me is that senior managers awarded themselves bonuses at the start of this year.

“Vector bosses are just venture capitalists and they want their pound of flesh.”

But the Vector spokesman said that any bonuses awarded would have been based on last year’s trading.

He added that collective consultation between management, trade unions and terminated staff was now underway.

“And I can assure you that Vector is committed to redundancy packages well above the statutory minimum,” he said.