Aero-engine company Rolls-Royce has announced it will cut 700 jobs from its Renfrewshire plant.
The news comes as the engineering giant announced plans to shed 9,000 jobs across the globe – around 20% of its workforce.
As part of the process, staff across its UK civil aerospace operations are being offered voluntary redundancy in the first phase of cuts.
It is expected that the job losses at its Inchinnan plant, near Glasgow Airport, will mostly affect staff who service aero-engines as Rolls-Royce announced it was considering removing servicing capability from the site entirely.
More than half of the 1,300-strong team will be let go in the devastating blow which the firm has said is a response to the impact COVID-19 is having on the aerospace industry.
Speaking of the announcement, a Rolls-Royce spokesperson said that offering voluntary redundancy was an important step as the company re-sizes in a bid to cope with the impact of the pandemic, but acknowledged it was a “terrible and devastating” prospect for many.
Calls for support
Nicola Sturgeon hailed the announcement as “absolutely devastating” for workers and families affected at First Minister’s Questions yesterday (June 3, 2020).
She pledged that the Scottish Government would do everything possible to ensure a “more positive outcome” to the job cut crisis declaring the jobs, facility and skills were important to the Scottish economy now and in the future.
The First Minister also announced that the government would work closely with trade unions and ensure a cross-party approach to protect and safeguard as many jobs as possible.
With regards to financial support Ms Sturgeon added that despite being required to operate within state aid, the government would consider all options to offer help to protect jobs and manufacturing facilities.
Business Minister Jamie Hepburn echoed the First Minister’s comments saying those affected by the announcement were a priority for the government. He outlined support for staff through Partnership Action for Continuing Employment (Pace) – an initiative for responding to redundancy situations.
Hard-working staff were also described as “integral” to the global success of the firm by Paisley and Renfrewshire North SNP MP Gavin Newlands.
He declared the announcement as “devastating news which will hit workers, their families and the wider community during these difficult times.”
Debt solutions and redundancy advice
The news of redundancy at Rolls-Royce follows similar announcements from prominent brands across the country.
As people in Scotland slowly face adjusting to the ‘new normal’ for those struggling with their finances threat of redundancy can have serious implications – especially those in a debt arrangement.
If you are worried about redundancy and are in a debt solution, it’s important you speak to your provider as soon as possible to inform them of a change in circumstance.
Regardless of whether you’re in a Debt Arrangement Scheme (DAS) or a Trust Deed it is important to actively seek help if you are made redundant.
Your provider will be able to offer help and advice as well as potentially pause your payments until you find new work or another source of income – as long as the change is only temporary. Alternatively, the amount you pay each month may be reduced to alleviate any pressure.
You will also be required to inform your provider if you have received any redundancy payments or are expected to as some of this may be required to be put towards your arrangement.
However, it’s important to remember your provider can only offer guidance and help if you get in touch as soon as possible.
Redundancy pay entitlement
If you’re facing redundancy you may be wondering how much of a pay-out to expect.
There are two types of redundancy pay to be aware of; contractual and statutory.
Details of contractual redundancy pay can be found in the terms and conditions of your employment contract. This will give details on any additional money your employer has agreed to pay in the event of redundancy. Contractual redundancy pay is over and above statutory pay.
Statutory redundancy pay is dependent on a number of factors. The amount of money you receive, if any, will depend on your age and the length of time you have been employed by your company.
If applicable, your redundancy amount will be based on your weekly pay which will be capped at £583.
- Those aged under 22-years-old will receive a half-week’s pay for each full year in the job.
- Aged between 22 and 41? You’ll receive one week’s pay for each full year worked in your position.
- Anyone aged 41 and older will receive one and a half week’s pay for each full year worked.
If you’re unsure how much money you are entitled to, this calculator can help you check what you’re owed.
