The fate of up to 600 skilled jobs in the UK hangs precariously in the balance as Prime Minister Andy Burnham faces intense pressure from Labour's union backers to award a lucrative £2.4 billion military satellite contract to European manufacturer Airbus, rather than its American competitor, Lockheed Martin.
Airbus, which has a significant presence in the UK through its facilities in Stevenage and Portsmouth, has long been the preferred choice for the British government when it comes to building the country's military satellites. The union that represents workers at these sites, Unite, is now leading a high-profile campaign alongside Labour MP Kevin Bonavia to secure the contract, arguing that choosing Airbus would safeguard existing roles and Britain's sovereign space capabilities.
The contract in question is for the Skynet 6 wideband satellite system (WSS), which involves two geostationary satellites crucial for carrying the UK Ministry of Defence's most sensitive data. This decision is being viewed as a critical early test for Prime Minister Burnham's commitment to using "public procurement to back British industry." It also represents one of the first major spending choices for the new Defence Secretary, Wes Streeting, as the UK navigates its relationship with the current US administration.
Lockheed Martin has put forward a competing offer, pledging to create approximately 500 direct jobs in north-east England and an additional 1,500 jobs within its broader supply chain. However, critics of the Lockheed bid raise concerns that the company would rely on American intellectual property rather than fostering British-developed technology, despite promises from the US firm to keep any IP developed in the UK and invest in a research partnership with Northumbria University.
Industry insiders warn that awarding the contract to Lockheed could prompt Airbus to consider relocating its satellite construction operations elsewhere, potentially delivering a significant blow to efforts to export British technology. The contract is also seen as vital for securing Airbus's UK facilities amidst a planned merger of the space businesses of Airbus, France's Thales, and Italy's Leonardo.