Luton defence workers vote for strike over ‘real-terms pay cut’ at Leonardo

Workers at Leonardo’s Luton site are preparing to strike later this autumn after rejecting a 3.2 per cent pay offer from the defence and aerospace giant, which their union says amounts to a real-terms pay cut.

Unite members at the Capability Green facility are among nearly 3,000 staff across the UK who voted overwhelmingly for industrial action. The union is calling on Leonardo to return to the negotiating table with an improved offer.

The strike threat comes after the company — which makes aircraft systems, helicopters and cybersecurity technology — reported revenues of nearly €18 billion and profits of more than €1.5 billion in 2024. Unite says workers are “highly skilled” and deserve a fairer share of the firm’s success.

Unite general secretary Sharon Graham said: “Our members are highly skilled and work on critical defence and aerospace systems yet are being short-changed by a company making billions. Leonardo needs to do the right thing, return to the negotiating table and make an improved offer our members can accept. Otherwise they will see their workers on the picket line and their factories shutdown.”

Regional officer Carrie Binnie added: “This strike is entirely the making of Leonardo and its refusal to improve its pay offer. And it can fix it with the stroke of a pen. Unite remains ready to return to negotiations but only if Leonardo management are prepared to come up with an offer worth listening to. Our members will not accept a real-terms pay cut for their hard work and loyalty.”

Balloting closed this week, and unless Leonardo reopens talks, Unite is expected to serve formal notice for strike action to begin within weeks.

The Luton plant employs hundreds of engineers and technicians who work on radar and electronic systems for aircraft used by the UK and its allies.

A Leonardo spokesperson said: “Our focus remains on offering a fair and competitive package to our employees and the proposed pay deal has the potential to pay employees 9.2 per cent over the course of the two year pay deal, representing a package of fixed and variable pay. We regularly benchmark our pay and benefits against industry standards to ensure they are appropriate. While we stand by the competitiveness of our current offer, we continue to engage in open dialogue with Unite to find a constructive path forward.”