Hostile takeover of GKN leads to Isle of Wight job fears

Fears for Isle of Wight jobs have been raised after it was announced last night (Thursday) that GKN shareholders had accepted an £8.1bn offer from manufacturing turnaround firm, Melrose.

GKN – who employ 59,000 staff worldwide, including 6,000 in the UK – of which over 1,000 are on the Isle of Wight with plants in East Cowes and Whippingham.

Melrose is known for purchasing companies that are under-performing, to go on to cut costs and sell on at a profit.

Baker-Smith: GKN presence “vitally important”
Cllr Julia Baker-Smith, the Isle of Wight councillor for Whippingham and Osborne, said,

“GKN is the largest employer in East Cowes and its continued presence is vitally important not only to the local economy, but also to the education of young people and to the community in East Cowes and Whippingham.
“Their valuable support of the engineering college in Whippingham gives young people a tangible career to aspire to. I will be seeking a meeting with the new owners at the earliest opportunity and reassurance that both the Whippingham and East Cowes sites will continue to provide local employment and remain a central part of the community.”

MP: “Take Melrose statements with a massive pinch of salt”
Following the news, Bob Seely, the Isle of Wight Conservative MP, said,

“I have heard nothing to reassure me, and I take Melrose statements with a massive pinch of salt. I want to hear more how Melrose intend to develop the businesses they have just bought, including the GKN plant on the Isle of Wight.
“If the Melrose business model continues to be ‘slash and burn’, I think they will do huge damage to their reputation and to UK business. If they get it wrong, I wonder if this will be a watershed moment in how we treat corporate raiders.”

IOWTUC: “Sold out to a cheap buck?”
Steve Butler, Spokesperson for Isle of Wight Trades Union Council, said,