Nearly 3,000 workers at Leonardo, a major defence contractor with significant operations in Yeovil, are poised to strike this autumn unless the company returns to the negotiating table with a better pay offer. The dispute arises after Leonardo proposed a 3.9% pay increase, which workers and their union, Unite, have rejected as insufficient.
Unite, representing employees across four sites, announced on October 8 that all locations voted in favor of strike action following the closure of the ballot this week. The union argues the current pay proposal amounts to a “real-terms pay cut,” failing to keep up with inflation and workers’ expectations.
Leonardo maintains that their offer is “fair and competitive,” highlighting that the two-year pay deal includes a potential total package increase of 9.2%, combining fixed and variable pay. The company emphasized its commitment to benchmarking pay and benefits against industrial standards within the UK employment market.
However, Unite regional officer Carrie Binnie stressed the company’s responsibility to avoid industrial action: “This strike is entirely the making of Leonardo and its refusal to improve its pay offer. It can fix it with the stroke of a pen. We are ready to negotiate, but only if Leonardo presents an offer worthy of attention. Our members will not accept a real-terms pay cut for their dedication and hard work.”
Unite general secretary Sharon Graham echoed these sentiments, emphasizing the skilled nature of Leonardo’s workforce and the company’s strong financial position. “Our members work on critical defence and aerospace systems yet are being short-changed by a company generating billions in revenue. Leonardo must do the right thing by returning to negotiations and making an acceptable offer. Otherwise, they will face strike action and potential factory shutdowns.”
Leonardo reported revenues nearing €18 billion and profits exceeding €1.5 billion in 2024. The company also plays a vital role in Yeovil’s local economy and workforce and is currently bidding for a £1 billion government contract.