Unite, one of the largest unions in the UK, has termed the weapons maker's £2.6 billion yearly profit "obscene" and said that strikes will continue unless a better salary offer is offered.On Wednesday, BAE, Europe's largest defense contractor, announced a substantial jump in revenues and a record order backlog. This is happening because governments throughout the world are increasing their defense budgets.
The weapons producer claimed it has made a reasonable offer to employees, who already get "market-leading pay and rewards." It is also talking to unions.On Wednesday, BAE announced record earnings for 2025, with sales rising by 10% to a record £30.7 billion.Before taxes, the defense company made £2.6 billion, which is more than the £2.3 billion it made the year before. After the announcement, shares went up by 3%.Charles Woodburn, the company's CEO, pointed out that the company has a record number of orders on hold. This is because countries throughout the world are increasing their defense spending because of uncertainties in the world.
Unite, which speaks over 5,000 workers at BAE's Warton and Samlesbury facilities, said its members "know their worth and want their fair share of the pie."The union alleged that last year, higher-skilled workers at the locations were handed 3.6% wage raises "against their will." Workers on the manufacturing floor consented to a 4.2% raise and an extra day off.
Ross Quinn, a local Unite organizer, said that the striking workers, who made an average of £50,000 a year, were "crucial" to BAE's success.Sharon Graham, the general secretary of Unite, remarked, "BAE's profits are almost too much to bear." The corporation is making billions of dollars from federal contracts, yet it won't pay our members what they are worth.BAE has said that employees will get 3.7% rises in 2026. Those who are on strike want 5.2% rises to make up for raises that were below inflation last year.
A representative for BAE Systems said that the current offer "is fair and makes sure that our employees continue to get the best pay and benefits in the industry, while also making sure that we are competitive and affordable for our customers."When asked if the strike will continue into March, BAE stated, "Most of our employees are working as usual, so we're focused on minimizing any disruption and putting our strong contingency plans into action."
After the company had its best results ever, Woodburn, who has been in charge of BAE since 2017, said, "In a new era of defense spending, driven by rising security threats, we're well-positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and in the future."
The company thinks its profits will keep going up, by about 10% in 2026.In November, BAE lost a High Court case that would have stopped workers from leaving its plants in Lancashire.The most recent walkout started on February 2 and is anticipated to last until at least February 20, with more than 1,200 Unite members participating.
Richard Hunter, an analyst at Interactive Investor, said of the record year for the defense contractor, "BAE is basking in the increasing heat of geopolitical tensions with a set of results that have easily blown past estimates."The UK, like other NATO partners, has spent more on weaponry and defense contracts.
Last year, Prime Minister Sir Keir Starmer stated that by April 2027, the UK would spend 2.5% of its gross domestic product (GDP) on core defense.This Wednesday, the BBC said that this could go up much more, to 3%, by the conclusion of this session.
