Ajax: 60 jobs could be cut at Wales' General Dynamics plants
- Published
Sixty jobs could be lost at the General Dynamics factories in Merthyr Tydfil and Oakdale.
800 people work across the two sites assembling the new Ajax vehicles for the British Army.
This follows concern over noise and vibration problems found during testing of the armoured vehicle.
A spokesperson for the company said it was committed to delivering the programme, but local politicians have described the news a "body blow".
General Dynamics is behind schedule for delivering the Ajax vehicles.
The Ministry of Defence (MoD) has so far been unable to commit to a delivery date, as tests are still being carried out to rectify problems.
The MoD previously said it had no confidence that its own target for Ajax vehicles to be fully operational by April 2025 would be met.
It is hoped a final decision on the project will be made by the end of this year.
A General Dynamics spokesperson said: "We remain committed to delivering the Ajax Programme. We are engaging directly with those affected employees and [workers' union] Unite as we undertake this process."
Unite said is it engaged in a formal consultation affecting production at the Merthyr Tydfil plant, but added there is no trade union recognition at the plant in Oakdale, which means consultation is being conducted without its involvement.
The Labour MP for Merthyr and Rhymney Gerald Jones said: "This announcement is a real blow for our communities. I will be meeting with the trade unions shortly to discuss today's shock announcement and how staff can be best supported."
In March, the National Audit Office cast doubt on the future of the Ajax programme, warning that its troubles "might prove insurmountable".
Last week a senior QC, Clive Sheldon, was appointed by the MoD, external to lead a review into what lessons could be learned from Ajax.
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