UK supply chain companies are predicting huge job losses following the government’s decision to award the Thameslink rolling stock contract to Siemens over Bombardier.
A survey of the Bombardier and Siemens UK supply chains by trade union Unite shows that over 40% of companies interviewed intend to cut jobs as a result of the contract award. Siemens was chosen as preferred bidder by the government in June.
The companies were interviewed about the potential impact to their business of Bombardier losing the Thameslink contract to Siemens, on the basis that rolling stock would be manufactured mainly in Siemens’ facilities in Germany versus Bombardier’s UK plant.
The job cuts would be across the UK, but the area around Derby would hardest hit, according to the survey. The survey found that the shortfall in business from the Bombardier plant in Derby not manufacturing Thameslink trains would, in many suppliers’ views, not be supplemented by orders from Siemens.