Call for ministers to block GKN hostile takeover
Ministers must intervene to save GKN from a damaging takeover, a leading Telford councillor said today.
Councillor Lee Carter claims around 400 Shropshire factory jobs are at stake.
The cabinet member has put forward a motion calling on Telford & Wrekin Council to make an official approach to the Government asking for help.
He says ministers should block an aggressive £7.4 billion takeover launched by Melrose.
GKN makes wheel parts at its Hadley base in Telford. It employs tens of thousands across the country, also specialising in aerospace manufacturing.
It comes as GKN workers will be travelling to the Houses of Parliament tomorrow to lobby MPs over the hostile takeover.
Melrose has been accused of wanting to asset strip GKN before selling it after a relatively short period.
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Councillor Carter said the uncertainty over the future of the firm, and quality jobs, was causing concern for workers, their families, and the council. Workers travel to Hadley from across Shropshire, making it one of the county's most important employers.
He said: "Obviously if the takeover happens there is a potential threat to jobs and the plant at Hadley, which has provided a source of employment for many years. My own father has worked there for 42 years, many other councillors have relatives and constituents who have worked there.
"It is significant in terms of the kind of jobs. They are skilled jobs, well paid jobs, a lot of people have served a long time there as well.
"I think the likelihood is if Melrose takes hold of GKN it would probably split the business, which is a big threat to the site in Hadley.
"This is about showing our support for the workers, the union and the whole company of GKN."
Councillor Carter's comments came as Melrose's bid for the firm received a double boost with regulatory backing in the US and Canada.
The motion put forward by Councillor Carter, and seconded by the authority's leader Councillor Shaun Davies, asks the government to block the bid.
It states: "This council notes with concern the attempted hostile takeover of GKN by Melrose PLC which threatens the jobs of many high skilled manufacturing workers, their pension funds and the supply chain.
"We call upon the secretary of state for business, energy and industrial strategy to use his powers under the Enterprise Act 2002 and intervene in the public interest to block any sale which is against the long term interests of the company and its workforce."
Councillor Carter said the company has an emotional attachment for many people in the borough.
He said: "I have had members of my family, generations have worked there. If you look across the council chamber councillors from different parties have had apprenticeships, there's a huge history with people across the borough."
Earlier this month the Unite union urged GKN shareholders to reject the hostile overtures from Melrose, warning the company would look to sell off aspects of the firm and in doing so would damage GKN's status as a global leader in manufacturing innovation.
GKN workers to lobby MPs over hostile takeover bid
GKN workers will travel from workplaces across England to the Houses of Parliament tomorrow to lobby MPs and demand Theresa May's government stops Melrose's debt-fuelled takeover bid of the British-based engineer.
Working in aerospace, automotive and defence, the workers from the south west, West Midlands and south of England believe a takeover by Melrose could lead to GKN being sold off piecemeal and jobs cut or shipped abroad.
Unite is urging the secretary of state for business Greg Clark to use his powers under the Enterprise Act (2002) to block Melrose's bid in the public interest.
Under the act the secretary of state can intervene on issues of national security. GKN is a major defence partner to Airbus and Boeing and supplies and maintains UK defence equipment used by the Royal Air Force and the Army. In addition to Typhoon, GKN is also involved in the F-35 joint strike aircraft, as well as the Chinook and Black Hawk helicopter programmes.
GKN workers will be meeting and briefing MPs from 10.45am in committee room 12.
Commenting Unite assistant general secretary for aerospace Steve Turner said: "There is mounting concern across political parties and business over Melrose's debt-laden bid and the risk it poses to UK jobs and defence interests.
"GKN will be saddled with over £1.3 billion of debt if Melrose succeeds with its bid, while its advisors will pocket upwards of £140 million in fees. This is a deal that would have 'The Wolf of Wall Street' licking his lips and leaves workers fearful that they will ultimately pay for this debt-fuelled bonanza with their jobs.
"Technology and jobs risk being shipped abroad and because of GKN's defence work our national security is at risk. The message from our members is clear. Theresa May's government must use its power to block the bid to protect jobs, communities and our national security."
Unite assistant general secretary for manufacturing Tony Burke said: "GKN is a world class manufacturer. It is essential to the government's industrial strategy and is one of the jewels in Britain's manufacturing crown.
"In Melrose's hands, all that would be put at risk and ministers' plans for the UK to be a leader in electric vehicles could be left in tatters.
"Melrose's debt-fuelled bid would not happen in France or Germany. Theresa May has said she will act in the national interest. It's time she did and saved British jobs by ensuring her government stopped the GKN takeover."
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