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Job losses as Preston and Yorkshire aerospace supplier plans redundancies

Written by on June 22, 2020

A major player in Lancashire and Yorkshire’s aerospace industry is set to cut jobs as a ‘direct result’ of the hardships brought about through the coronavirus pandemic.

Technicut, which specialises in solid rotary cutting tools for the aerospace industry, has confirmed to LancsLive this afternoon (June 22) that it is planning on submitting a HR1 notification.

This is a form for businesses to notify the government of potential redundancies.

The company is primarily based in Sheffield, South Yorkshire but also has employees working out of BAE Systems’ aerospace site in Samlesbury, near Preston.

It is currently not known how many jobs are at risk and where the at-risk jobs are based, only that a formal redundancy consultation process has yet to be launched by bosses at Technicut.

Managing director David Fothergill told LancsLive: “I can confirm that as a direct result of the Covid-19 pandemic and the associated impact on the aerospace industry, regrettably Technicut has announced internally the requirement for redundancies to deal with the long term industry challenges faced.”

Mr Fothergill added: “Technicut has not yet entered into a formal redundancy consultation process, but intends to lodge an HR1 notification this week.

“The company has not confirmed the numbers of proposed redundancies or the roles that may yet be affected.”

It is the latest blow to Lancashire’s historically strong aerospace industry, brought on by the continuing woes of Covid-19.

In May, aerospace giant Safran Nacelles announced it is set to cut 250 jobs at its Burnley site; amounting to one-third of all company jobs in the town.

Bosses at Safran have said they had to take the decision to protect the “longer-term existence” of the business in Burnley.

In a statement to LancsLive, Michael Rigalle, Managing Director of Safran Nacelles Ltd, said: “The aerospace industry is facing an unprecedented crisis because of the wide-ranging impacts of the coronavirus pandemic.

“There has been a 80% reduction in the amount of global air travel, and the financial impact of this is already being felt throughout the industry.”

What happens now?

As mentioned, Technicut plans on submitting a HR1 notification to notify the government of redundancies.

The government must help employees facing redundancy.

To do this, advance notification of potential redundancies is required from employers.

Failure to comply with statutory notification requirements without good cause may result in prosecution and a fine, on summary conviction, for the company and/or officers of the company.

Where employers are furloughing their staff and they are not contemplating dismissing 20 or more staff in a single establishment, there is no requirement to carry out a formal consultation and notify the Secretary of State.

The amount of notice required depends on the number of proposed dismissals.

For 20 to 99 redundancies in a 90-day period, at least 30 days before the first dismissal.

For 100 or more redundancies in a 90-day period, at least 45 days before the first dismissal.