Task force vows to ‘stand with Rolls-Royce’ after job cuts reports
Leaders of Derby’s newly-established Coronavirus Economic Recovery Task Force and Derby City Council are to seek talks with Rolls-Royce after the manufacturing giant was said to be looking at axing 8,000 jobs.
The task force says it will also hold discussions with the Government to understand what help it can offer as the aerospace giant attempts to mitigate major reductions in its revenues because of the crisis in the aviation industry brought on by the coronavirus pandemic.
Rolls-Royce says it has taken swift action to increase liquidity and dramatically reduce spending but confirms that it will need to take further measures. It is working with employee and union representatives and has promised to update its staff before the end of the month.
The company is Derby’s largest private sector employer and its civil aerospace division is headquartered in Sinfin.
The Economic Recovery Task Force was formed last week to gather intelligence on the impacts of the pandemic on city businesses, offer practical short-term assistance wherever possible and draw up a longer-term plan to ensure Derby emerges from the crisis in as strong a position as possible.
The task force steering group is chaired by city council chief executive Paul Simpson. He said it was vital that steps were taken to support Rolls-Royce, its employees and the wider aerospace supply chain.
He added: “The company and aviation more generally are strategically important to the UK. They have helped the country create jobs and export wealth and can do so again if they are assisted through this difficult period.
“We will be seeking urgent talks with Rolls-Royce senior management to understand what the city can do to support them. We’ll also be looking at what help might be available for the aerospace supply chain, which also plays such an important role in Derby’s economy.”
Derby City Council leader Chris Poulter said he would be contacting government ministers to understand how they might also assist.
He said: “The Coronavirus crisis and the resulting lockdowns to safeguard public health, necessary as they have been, have had a huge effect on many sectors of the economy but aerospace is amongst those worst hit.
“A large part of Rolls-Royce’s revenue depends upon the maintenance of aircraft engines but if those aircraft are not flying the work simply isn’t there. There was nothing that the company could have done to plan for this eventuality.
“It is vital that Derby – and the UK as a whole – stands with Rolls-Royce, its workers and others in the sector at this challenging time.”
The Derby Coronavirus Economic Recovery Task Force is a partnership formed from the public and private sectors. Its membership includes Derby City Council, the University of Derby, Marketing Derby, the Cathedral Quarter and St Peters Quarter Business Improvement Districts, Derby Renaissance Board, Intu and East Midlands Chamber.
