BAE Systems brace for strike action as workers reject 3.6 % pay offer

22 October 2025

BAE Systems logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration

In a dramatic show of industrial intent, the British trade union Unite announced that members employed at BAE Systems’s major aerospace sites in Lancashire will commence strike action from 5 November to 25 November after rejecting a 3.6 percent pay rise offered by the company.

The dispute centers on workers based at the company’s Warton and Samlesbury facilities, where manufacturing and quality-control staff emphasised that their latest wage proposal equates to a real-terms pay cut in the face of inflation and rising living costs. Union officials described the offer as “wholly inadequate” given the performance and workloads at the sites.

Unite highlighted that the upcoming strike will impact four occupational sections at the sites and is a part of a broader labour tension in the UK aerospace and defence sector. With thousands of employees balloted and a strong vote to strike, this action sends a clear message of escalating resolve among the workforce.

From the company’s perspective, the 3.6 percent raise reflected what management deemed fair in context of the wider economic environment and the need to preserve competitiveness. Yet this argument appears to have failed to land with employees, many of whom point to rising costs, a heavy backlog of work and the ever-growing expectations placed on defence manufacturing crews.

The scale of the action is considerable: more than five thousand union members at the two sites were involved in earlier strike ballots and the high turnout underscores how heated the mood has become. Analysts caution that if the strike proceeds it could affect production timelines, delivery contracts and the company’s ability to meet global defence commitments.

A key part of the tension lies in the cost-of-living crisis. Employees argue that any single-digit percentage increase fails to keep pace with inflation. The union further pointed out that neighbouring employee groups at other companies accepted far higher rises, along with extra leave days fueling the sense of disparity and unfair treatment.

Union General Secretary Sharon Graham stated that workers have “reached the line” and will no longer accept “symbolic rises disguised as meaningful pay awards.” The threat of strike was described as a “last resort” after months of failed negotiations.

For BAE Systems, the implications of this action extend beyond wage costs. Labour-relations analysts say the unfolding dispute may prompt questions from major clients and government departments about supply-chain reliability. With defence contracts often long-term and high-value, any disruption or perceived unwillingness to resolve industrial issues could carry reputational as well as financial risks.

From the broader industry lens the dispute exemplifies how labour dynamics within defence manufacturing are under renewed pressure. After years of relative calm, rising energy prices, raw-material cost inflation and high production demands are now converging to force workers to reassess their terms of engagement.

If the strike takes hold between early and late November production lines in Lancashire could shut or slow significantly. That timeline also carries the possibility of ripple effects into subcontractors and downstream partners in the supply chain, both of which depend heavily on the Warton and Samlesbury operations.

Company officials are on high alert. A prolonged walk-out could lead to delayed deliveries, potential liquidated-damages in contracts and broader disruptions in a sector driven by tight margins and high standards. The labour event may also affect investor sentiment and the company’s share performance if the market perceives operational risk increasing.

In response to the announcement, BAE Systems issued a terse statement acknowledging the union’s decision but emphasised the company remains committed to engaging with staff and resolving the dispute. They reiterated that the offered package included “competitive salary adjustments” and highlighted the availability of broader benefits. Union leaders, however, dismissed the promise of benefits as overshadowed by inadequate base pay.

As the clock ticks down to 5 November, all eyes will be on whether the two sides can re-enter meaningful negotiations or whether strike curtains fall as planned. The coming weeks may show whether the company and union can find a middle ground or whether the conflict becomes a landmark for UK aerospace labour relations.

Should a resolution be achieved, the terms will likely shape future pay deals across the sector. If not, the walk-out at BAE could become a cautionary tale of how modern industrial manufacturing, increasingly exposed to global competition, faces internal labour pressures that may threaten output and stability.