The £2.4bn military satellite contract between Airbus and Lockheed Martin is at the centre of a heated debate over UK jobs and national security. Sharon Graham, general secretary of Unite union, warns that awarding the Skynet 6 wideband satellite system to a US rival would be a “massive mistake” and put as many as 600 jobs at risk. The decision is seen as an early test of Andy Burnham’s promise to use public procurement to back British industry.
Airbus vs Lockheed Martin: The Bid Battle
Airbus, headquartered in France but with satellite design and manufacturing facilities in Stevenage and Portsmouth, has built its reputation on British engineering. In contrast, Lockheed Martin promises to create 500 direct jobs in north-east England, including an assembly facility in Durham, plus 1,500 supply chain roles. Both companies claim to support UK industry, but the choice carries political weight as the UK navigates its relationship with the US under Donald Trump.
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Key Details of the Skynet 6 Contract
The Skynet 6 wideband satellite system (WSS) will consist of two geostationary satellites designed to carry the UK Ministry of Defence’s most sensitive data. The contract, worth £2.4bn, will be one of the first major spending decisions for new defence secretary Wes Streeting.
| Factor | Airbus | Lockheed Martin |
|---|---|---|
| Job creation | Retains ~600 existing jobs in Stevenage and Portsmouth | ~500 direct jobs in Durham + 1,500 supply chain jobs |
| Intellectual property | UK-developed technology | US intellectual property, but pledged to keep UK-developed IP in the UK |
| Export potential | Limited details | Part of offer: exports from UK to other countries |
| Political alignment | Supports Labour’s “back British industry” pledge | Aligns with US trade relationship under Trump |
Union and Political Pressure
Unite’s Sharon Graham and Labour MP for Stevenage, Kevin Bonavia, are lobbying the government to choose Airbus to protect existing skilled jobs. Critics of the Lockheed bid argue that the US company would rely on American intellectual property rather than using technology developed in Britain. However, Lockheed has already invested in a research partnership with Northumbria University, showcasing its commitment to the UK.
What This Means for UK Defence
The decision will set a precedent for how the UK balances domestic manufacturing with international alliances. Andy Burnham has explicitly stated he wants to use public procurement to back British industry, but the allure of thousands of new jobs in the north-east and stronger US ties cannot be ignored.
Key Takeaways
- 600 existing jobs at risk if Airbus loses the contract
- Lockheed Martin promises 2,000 total jobs (direct and supply chain) in north-east England
- Decision will test Burnham’s “back British industry” pledge
- Skynet 6 satellites will handle MoD’s most sensitive data
- Outcome influences future UK-US defence trade
FAQ
What is the Skynet 6 wideband satellite system?
Skynet 6 is a £2.4bn contract for two geostationary satellites that will carry the UK Ministry of Defence’s most sensitive data. It is being contested by Airbus and Lockheed Martin.
Why is the union opposing Lockheed Martin?
Unite union fears that awarding the contract to Lockheed Martin could put up to 600 existing jobs at Airbus’s facilities in Stevenage and Portsmouth at risk. General secretary Sharon Graham called it a “massive mistake”.
What jobs does Lockheed Martin promise?
Lockheed Martin has pledged to create about 500 direct jobs in north-east England, including an assembly facility in Durham, and an additional 1,500 jobs across the broader supply chain.
How does this relate to Andy Burnham’s pledge?
Andy Burnham has promised to use public procurement to back British industry. This contract is an early test of that pledge, as choosing Airbus would support existing UK manufacturing.
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