A union is balloting members at an airline parts maker after claiming management want to cut staff wages by up to £3,000.
Unite says SPS Technologies, in Leicester, wants to make changes that would see staff – most of whom the union says it represents – lose between £2,500 and £3,000 from their salaries.
The union said around 200 staff from the Thurmaston workforce were made redundant during the summer, with the remaining 280 now facing reductions to overtime pay, sick pay, paid breaks, shift premiums and other terms and conditions.
The business makes bolts, pins, screws and nuts designed to work under high-stress conditions in aircraft engines and airframes.
Two years ago there were some 580 staff at the Barkby Road site.
BusinessLive contacted SPS and spoke to someone its HR department who said “there is no comment” before putting the phone down.
The company is owned by jet engine component manufacturer Precision Castparts Corp, which has its headquarters in Portland, Oregon, on the west coast of America. BusinessLive has asked it for a comment.
In a statement Unite said: “Losing such a significant amount will result in workers being unable to pay their mortgages and other essential bills.
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“Staff are concerned that the cuts may force them to use payday loans, look for second jobs or find new work altogether.
“The strike ballot, which opens on Tuesday, December 1, and closes on Monday, December 14, could result in SPS’s operations grinding to a halt.”
Unite regional officer Lakhy Mahal said: “Not content with firing nearly half of its loyal workforce in the middle of a pandemic when they could have been furloughed, SPS is now attempting to make deplorable attacks on the pay and conditions of those who remain.
“SPS is using the pandemic as an excuse to fire and rehire staff on vastly inferior contracts and wages.
“These opportunistic changes will have hugely negative impact on our members’ financial security.
“Anger is at such a high level that a strike ballot has been called, which could result in SPS’s operations grinding to a halt.
“These wage cuts are so severe that some workers fear they will not be able to keep up with their mortgages or pay their bills.
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“Despite working hard in a full-time job, staff are concerned they will have to rely on payday loans, get an evening job or even leave to find new work.
“The situation is destroying any remaining trust the workforce had in their employer.
“The behaviour of SPS towards its dedicated staff, who worked right through the first lockdown to ensure the company completed its orders, is simply wrong and will be fought by Unite every step of the way.
“I strongly urge SPS to stop these attacks, which are causing the firm great reputational harm, before this dispute escalates further.”
Recently posted accounts for SPS Technologies LTD, showed an operating loss of £1.3 million in 2019, compared to a loss of £4.4 million a year earlier.
Sales were £47.3 million, which was slightly up on the previous year.
The accounts said the company had net assets last year of £46.8 million, down from £62.2 million, and a pension liability of £31.1 million, which was up almost £8 million.
The accounts said the business was implementing further cuts in 2020 to mitigate the impact of Covid-19.
The accounts said: “The company is committed to recruit and retain a highly skilled and loyal workforce to meet the continuous improvement demands of our customer base.”
But it added: “The global impact of the pandemic has had an unprecedented reduction in global air travel leading to significant reduction in our order book.
“The forecasted future business activity is insufficient to sustain current employment levels and the company has reduced its workforce to match the drop in future demand.”