Coronavirus: Talks start over possible General Electric job cuts in Wales

GE Aviation employs 1,400 at its aircraft engine maintenance plant in Nantgarw

A consultation on possible job losses at one of south Wales' biggest employers has started after General Electric announced it will cut up to a quarter of its aviation business staff.

GE said it is consulting with the 1,400 people at its Nantgarw site, near Caerphilly, as the firm suffers from the drop of numbers in air travel.

It said 13,000 of its 52,000 people worldwide workforce could be affected.

GE Aviation makes jet engines for Boeing and Airbus.

The company's plans are the latest sign that the air travel industry is preparing for a prolonged travel slowdown due to the coronavirus pandemic.

The GE site in Nantgarw, near Cardiff, recently won a £20m contract to repair engines

The firm had already announced a 10% cut to its US aviation workforce but it said "more is required".

"The global impact of the coronavirus pandemic is being felt across the aviation industry," said a GE spokesperson.

"The business is consulting with all employees at the Wales site, including those currently furloughed, regarding voluntary severance. The total number of people affected will only be finalised through the consultation process which is currently underway."

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The local MP and AMs have acknowledged that this "will be a very worrying time for employees" at the huge 80-year-old Nantgarw plant, which has overhauled engines from iconic aircrafts such as Concorde.

"We do welcome the company's decision to proceed on the basis of voluntary redundancies, conducted in full consultation with all employees and the trades unions," said a statement from Pontypridd AM Mick Antoniw and MP Alex Davies-Jones.

"We are aware of the devastating impact that the coronavirus pandemic is having on the aviation industry and on GE Aviation's ability to operate at both the local and international level.

"GE Aviation is a crucial part of both the local and global economy and we will continue to support the company and its employees through this extremely difficult time."

The Welsh Assembly's shadow business and economy minister Russell George AM added the news was "very worrying" for the staff at the plant.

Drop in air travel

Manufacturing giant Boeing, as well as airlines such as British Airways, have also announced significant cuts.

Boeing last week said it planned to reduce its global workforce by 10% or 16,000 jobs, while British Airways' parent company IAG said it would slash 12,000 positions.

The potential 13,000 job cuts at GE Aviation, which employs about 52,000 people in 19 countries worldwide, comes shortly after the unit revealed profits had fallen roughly 40% in the three months to March.

The news comes three years after the site won a £20m contract to maintain and repair the world's largest and most fuel efficient jet engine, the GE9X.

"We appreciate the commitment of all our employees during this difficult time, and we regret having to take this action," added the GE statement.

"Throughout this time, we remain focussed on protecting the safety of our employees, continuing to serve our customers, and preserving our capability to respond as the industry recovers."