Union leaders to grill Melrose on proposed GKN takeover

Union leaders were today meeting with Melrose bosses, pressing for information about plans for jobs and investment over its takeover bid for engineering giant GKN.

Unite officials and workers’ representatives from GKN factories and the firm’s major customers including Airbus, Jaguar Land Rover, Ford and Toyota, were demanding clarity on a number of issues ranging from financing, debt levels and investment to jobs and pensions during the meeting in London.

Engineering giant GKN has a major operation in Telford and employs about 340 people at Hadley Park, making structural parts including wheels. Around 1,000 other jobs are at other plants across the Midlands.

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Melrose last week increased its offer for GKN from £7.4 billion to £8.1bn. It said its “final offer” for the company was equal to 467p per share and would give GKN shareholders a 60 per cent stake in Melrose.

It said all recent attempts to engage in “constructive discussions” with GKN have been blocked. The deadline for accepting the offer is 1pm on March 29.

Unite’s assistant general secretary Steve Turner said: “Melrose’s bosses have been far from clear about the detail of their true intentions for GKN beyond vague platitudes and soundbites.

“Question marks remain around the levels of debt Melrose will pile on the company and what it means for jobs, long-term investment and product development.

“GKN’s highly skilled UK workforce fear they will end up being sold off piecemeal, with their jobs either axed or shipped overseas to fund a debt-fuelled pay day if Melrose gets its way. That concern over Melrose’s short-termism extends to major GKN customers such as Airbus too, which relies on a long-term relationship with GKN to develop the wings of the future.

“If Airbus or other major customers take their business elsewhere it would blow a hole in revenues and destroy jobs and innovation.

“With so many questions unanswered and serious concerns remaining over the UK’s future national security and defence capabilities, the Business Secretary Greg Clark should intervene now and call this unwanted, short-term, profit motivated and debt-laden bid in, to protect our UK defence interests as well as those of our allies.”

Unite assistant general secretary for manufacturing Tony Burke added: “Melrose has failed to convince workers and customers that they have the capability and expertise to manage a company the size of GKN.

“There’s been a lot of talk about Melrose’s financial engineering expertise, but little on the real engineering needed to ensure a secure stable future for GKN and its workforce who are central to the success of the government’s industrial strategy.”