British luxury automobile maker, Rolls-Royce has proposed to temporarily close its jet-engine factories for two weeks this summer as it seeks to handle costs amid Covid losses. The aero-engine maker has initiated talks with unions on the shutdown and cost cutting at its civil aerospace unit.
In a statement, Rolls-Royce said, “As we continue to manage our cost base in response to the ongoing impact of the Covid-19 pandemic of the whole commercial aviation sector, we are proposing a two-week operational shutdown of civil aerospace over this summer.” The company hit losses due to the Covid crisis with its airline customers grounding planes. It had warned last month that travel would be even more constrained than expected this year, leading to increased cash outflow.
A media report suggested that Rolls-Royce staff have been told the two weeks' pay they will lose will be spread across the year to minimise the impact on their income. The move is expected to affect all 19,000 staff in the Rolls' international civil aerospace division, including 12,500 in the UK.
