Unite calls on UK and Swedish governments to intervene to save
Ericsson R&D plant and UK hi-tech skills
19th November 2009
Unite, the UK’s largest union, is calling on Lord Mandelson,
secretary of state at the Department for Business, Innovations and
Skills to intervene to save the Ericsson research and development
plant at Ansty Park in Coventry which is due to close next
year with the loss of 700 jobs.
Unite is launching a campaign to save the site claiming that
Ericsson’s decision to close the site and transfer the work to
China and elsewhere will be a huge blow to the UK economy.
Unite is particularly concerned that the closure of the site
will reduce the UK’s capacity in the innovation, research and
development of hi-tech communications which is seen by the
government as one of the key areas of the future for the UK.
Peter Skyte, Unite national officer for IT and communications,
said: “If this site is allowed to close there will be a loss of
highly skilled work that is central to future strategic
technological development. The country’s capacity to compete for
future R&D work will be diminished.”
Unite is seeking a meeting with Lord Mandelson to see how the
government can intervene in areas such as procurement contracts for
government communications work, in particular contracts in secure
communications and defence/security projects.
The union also wants the government to investigate the
provisions for R&D tax credits. The union wants to know why
Ericsson UK apparently loses out to other Ericsson country plants,
for example Canada, in internal bidding contracts.
“We want the government to challenge Ericsson’s position.”
continued Peter Skyte, “We also want to know if other countries
where Ericsson has sites give sweeteners which results in the UK
being less competitive and therefore unsuccessful in winning
internal contracts.” .
Unite joint general secretaries Derek Simpson and Tony Woodley
have written to the Ericsson president and chief executive,
Carl-Henric Svanberg, soon to take over as head of BP, pressing him
to meet a Unite delegation and for the company not to turn its back
on the UK.
“We believe the announcement by Ericsson risks damaging the
reputation and standing of the company in the UK, which cannot in
the long term be to the benefit of the company.” added Peter
Skyte.
“In addition, this proposal appears to be based on short term
cost savings at the expense of the company’s long term
effectiveness in R&D within Europe. We want to explore all
available means to find a longer term solution for the future of
the company’s operations at Ansty in the interests of Ericsson, the
UK workforce and our members.”
ENDS
For further information contact Peter Skyte on 07768 931302 or
Ashraf Choudhury in the Unite Press Office on 020 7420 8914 or
07980 224761.
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