Unite calls on UK and Swedish governments to intervene to save Ericsson R&D plant and UK high tech skills

Unite calls on UK and Swedish governments to intervene to save Ericsson R&D plant and UK high tech skills

Unite calls on UK and Swedish governments to intervene to save Ericsson R&D plant and UK high tech skills

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 R&D plant at Ansty Park, Coventry which is due to close next year with the loss of 700 jobs.

Ericsson’s decision to close the site and transfer the work to China and elsewhere is a huge blow to the UK economy and Unite is launching a campaign to save the site.

Unite is particularly concerned that the closure of the site will reduce the UK’s capacity in innovation, research and development of high 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. We also want to know if other countries where Eriksson has sites give sweeteners which causes the UK to be less competitive and therefore unsuccessful in winning internal contracts,” said Peter Skyte.

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.

“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,” added Peter Skyte.

For further information contact Peter Skyte on 07768 931302 or Ashraf Choudhury in the Unite Press Office on 020 7420 8914 or 07980 224761.