News: Rolls-Royce plans 2-week factory shutdown

Employee Relations

Rolls-Royce plans 2-week factory shutdown

Approximately 19,000 workers around the world will not be paid during the shutdown period, most of them in the UK.
Rolls-Royce plans 2-week factory shutdown

Rolls-Royce is proposing to shut down its international civil aerospace unit for two weeks during the UK summer (June to September) in an attempt to manage costs. The operational shutdown will be complete, meaning that all operating costs from wages to utilities to other overheads will be minimal during the period. Approximately 19,000 workers will be affected, including 12,500 in the UK, where the company's major jet engine manufacturing facilities are located.

Rolls-Royce has not provided details of which other facilities will be affected, but it's likely that its manufacturing campus in Singapore, which assembles and tests its Trent engines, will be included in the shutdown. Its civil aerospace business also has a strong presence in Japan, China, the US, and France, among others.

All affected staff will not be paid during the shutdown, but the company has said that it will spread the two weeks' pay loss over the year so that they do not take such a large financial hit. Negotiations with the unions are already in progress.

Earlier in January, Rolls-Royce had already warned that travel this year would not recover as expected, and forecast losses of up to US$2.7 billion. The aerospace sector is not projected to recover from its slump this year, with COVID-19 spikes around the world and the emergence of new coronavirus variants prompting extended lockdowns and tightened border controls.

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Topics: Employee Relations

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