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Stop the GKN takeover

New ComponentTurnaround firm, Melrose, is trying to stage a hostile takeover bid of engineering giant GKN, and plans to split its automotive and aerospace divisions.

Our reps have met with GKN directors, lobbied MPs and Government ministers and are now seeking meetings with the major shareholders of GKN and Melrose. 


The Melrose bid proposes using millions of pounds worth of debt to tempt shareholders with promises of an ‘extraordinary dividend.’ 

That means a big pay out for hedge funds and other shareholders, big fees for the banks and a hefty £285 million in bonuses for Melrose bosses – but it’ll leave GKN in serious debt that the workforce will be expected to shoulder. That is unacceptable.
GKN Take Action Button

Unite is urging Government ministers to block this bid and toughen up UK takeover rules.

It’s a bad deal for all of us

Unite is the main union representing workers across GKN’s UK automotive, aerospace and research and development divisions which employ a total of 6,000 workers.

We must campaign to defend GKN and thousands of highly skilled manufacturing jobs from this hostile bid. What we need is a long-term commitment, matched by investment, rather than a damaging restructure or a Senior GKN reps from across all major UK sites lobbying MPs – Rebecca-Long Bailey, Lucy Allan, Ian Mearns and Jack Dromeyhostile takeover. 

What YOU can do  
 
Write to your MP  
MPs must put pressure on the Secretary of State to intervene and block any bid which fails to protect the long term interests of the business and the workforce. 

We have drafted a letter below as a template for you to write to your MP. It only takes a minute and you can find a full list of MPs with GKN sites in their constituencies under campaign resources below too.  

Picture: Senior GKN reps from across all major UK sites lobbying MPs – Rebecca-Long Bailey, Lucy Allan, Ian
Mearns and Jack Dromey
Senior GKN reps lobbying MPs – Rebecca-Long Bailey, Lucy Allan, Ian Mearns and Jack DromeyHave your say 

It is important that Unite’s response to this takeover bid is led by you. Please share your views on our online survey here Or visit: https://response.questback.com/unitetheunion/uniteinGKN(All options and details will be treated in strict confidence).

Join a workplace meeting  
Unite senior stewards will be holding members’ meetings in all major GKN workplace. Contact your rep for more information. 

Together we can make a difference.
 

Sample content to contact your MP

Support GKN: Oppose The Hostile Takeover

Dear [INSERT YOUR MPs NAME HERE]

I am writing to you as my constituency MP to call for your support. I work at GKN [INSERT THE NAME OF YOUR LOCATION HERE] and our company is subject to a hostile takeover bid from Melrose, which threatens hundreds of highly skilled jobs in your constituency.

GKN is one of this country’s most important manufactures, supplying components to automotive and aerospace giants such as Jaguar Land Rover and Airbus. The company employs over 6,000 workers across 14 UK sites. All that is being put at risk by Melrose, a so-called ‘turnaround’ company, which looks no further than the share price. 

The Melrose bid is based on using vast loans to lure shareholders with an ‘exceptional dividend’ and then shoulder GKN with a debt that the workforce will be expected to pay off through cuts and restructures. The takeover’s focus goes little beyond a pay out to shareholders, banks and the Melrose executives who are in line for over £280 million in bonuses. There is no serious long-term plan for GKN’s future, which must be based on investment to defend thousands of highly skilled jobs.

My trade union, Unite, is coordinating opposition to the bid alongside sister unions across GKN’s international operations. I am calling on you to support us by demanding, in the House of Commons, that the Secretary of State Greg Clark intervenes in the public interest. It is clear that the Melrose bid is focused only on share price, not on what is best for the business, or the thousands of workers whose livelihoods rely on it.

If the Government’s promise of an industrial strategy is to mean anything it must mean supporting us, the workers in industries who will make it possible. It cannot mean turning a blind eye to a debt-fuelled takeover which sets a precedent for a return to the cowboy capitalism of the 1980’s.

As a matter of urgency I would like to request a meeting with you so that we can discuss our concerns and any support you can give.

I look forward to hearing from you. 

Yours faithfully

[INSERT YOUR NAME HERE]

GKN [INSERT GKN LOCATION HERE]

Email/Phone Number: [INSERT YOUR EMAIL/PHONE NUMBER HERE]

Unite Member

Type Name Size
Link Type Icon Unite employees’ reps’ opinion on the Melrose offer for GKN 0.12Mb
Link Type Icon GKN Template Letter to MPs 0.01Mb
Link Type Icon List of MPs with GKN sites in their constituencies 0.02Mb
Link Type Icon GKN Takeover Bulletin January 2018 0.83Mb

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