Babcock shipyard announces redundancies

Babcock International has made cuts in its workforce at its Rosyth dockyard in Fife, Scotland, as part of a company shake-up. The news came as a surprise since only four days ago the Ministry of Defence has awarded the troubled yard a multi-million pound order to refit three Royal Navy warships.

Union leaders had hoped the contract, along with a deal to refit a fourth ship, would help protect the 1,800-strong workforce but management claims that restructuring and cost-cutting had helped them to win the crucial orders.

Babcock chief executive, Peter Rogers, today described the redundancies as “regrettable”, but said the new contracts would enable the dockyard to face the future with confidence.

He said: “Winning this work in the face of stiff competition is excellent news for Rosyth and demonstrates that the continuing drive to reduce costs and increase efficiency can result in contract wins.”

The dockyard is to refurbish minesweepers HMS Ramsey and HMS Walney, frigate HMS Kent and destroyer HMS Edinburgh.