Nearly 3,000 employees of defence contractor Leonardo from sites across the UK—including Yeovil, Edinburgh, Newcastle, Luton, and Basildon—are set to vote on potential industrial action due to a pay dispute. The Unite union announced on Thursday, September 18, that workers have rejected a proposed 3.2% pay increase, viewing it as a real-terms pay cut. The ballot on striking will continue into early October.
Unite’s national aerospace officer, Rhys McCarthy, expressed strong criticism of Leonardo’s offer: “Leonardo is incredibly wealthy, generating billions from UK government contracts. It is unacceptable to present such a poor pay offer to a highly skilled and valuable workforce.” He warned that unless the company returns promptly to negotiations with an improved proposal, workers’ frustration will be evident on the picket lines.
Unite general secretary Sharon Graham echoed this sentiment, emphasizing the expertise of Leonardo’s workforce: “Our members contribute vital work on defence and aerospace systems yet are being short-changed by a company profiting billions. Leonardo must return to the negotiating table with a better offer our members can accept.”
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Leonardo, headquartered in Italy, is a leading global manufacturer of helicopters, aircraft, aerospace components, electronics, and cybersecurity equipment. The company reported revenues of nearly €18 billion and profits exceeding €1.5 billion in 2024. As a major employer in Yeovil, Leonardo plays a key role in the local economy. The contractor is also bidding for a £1 billion government contract, which could further bolster the region’s economic prospects.
Responding to the dispute, a Leonardo spokesperson stated: “We recognize that our employees are the driving force behind our technological innovation. We have made a fair and competitive two-year pay offer to union members, which includes fixed and variable pay elements, potentially totaling a 9.2% increase. Our offers are benchmarked regularly against market standards within the UK employment and industrial sectors.”