The military satellite contract worth £2.4bn has become a flashpoint as Andy Burnham is urged to choose Airbus over US rival Lockheed Martin, with Unite union warning of a “massive mistake” that could jeopardise 600 UK jobs. Sharon Graham, general secretary of Unite, insists the Labour mayor must back British industry in this early test of his procurement pledge.
Why the Skynet 6 Contract Matters
The Skynet 6 wideband satellite system (WSS) will deliver two geostationary satellites carrying the UK Ministry of Defence’s most sensitive data. The winner will secure decades of work, making the decision a bellwether for UK defence procurement under the new government.
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Airbus vs. Lockheed Martin: A Clash of Jobs and Sovereignty
Airbus, headquartered in France but with satellite design and manufacturing in Stevenage and Portsmouth, already employs hundreds of skilled workers. Unite argues that awarding the contract to Lockheed Martin could lead to 600 job losses at Airbus UK. Meanwhile, Lockheed promises 500 direct jobs in north-east England, an assembly facility in Durham, and 1,500 supply-chain roles, plus potential exports.
| Criteria | Airbus Bid | Lockheed Martin Bid |
|---|---|---|
| UK Jobs (direct) | Retains ~600 existing | 500 new (plus 1,500 indirect) |
| Intellectual Property | UK-controlled, homegrown tech | Pledged to keep IP in UK |
| Export Potential | Limited by US restrictions | Strong via US alliance |
| Political Risk | Aligns with “Buy British” pledge | May strain US-UK relations under Trump |
Political Pressure Mounts on Burnham and Streeting
Labour MP Kevin Bonavia of Stevenage has joined Unite in lobbying the government. Defence Secretary Wes Streeting faces one of his first major spending decisions amid a delicate relationship with Donald Trump’s nationalist US administration. Critics of the Lockheed bid warn that American intellectual property would dominate, undermining UK sovereignty in space.
Key Takeaways
- The £2.4bn Skynet 6 contract will determine the future of UK military satellite capability.
- Unite warns of 600 potential job losses if Airbus loses to Lockheed Martin.
- Lockheed’s offer includes 500 new jobs in Durham plus export opportunities.
- The decision tests Andy Burnham’s pledge to use public procurement to back British industry.
- Political tensions with the US under Trump add complexity to the choice.
FAQ
What is the Skynet 6 military satellite contract?
Skynet 6 is a £2.4bn project to build two geostationary satellites for the UK Ministry of Defence, carrying sensitive military data. The winner will manufacture the satellites, with a major impact on UK jobs and technology sovereignty.
Why is Unite union opposing Lockheed Martin?
Unite, representing Airbus workers, fears that up to 600 existing UK jobs would be lost if the contract goes to Lockheed. The union also argues that Airbus uses British-developed technology, whereas Lockheed relies on US intellectual property.
What jobs does Lockheed Martin promise to create?
Lockheed has committed to 500 direct jobs in north-east England, including an assembly facility in Durham, plus 1,500 roles in the wider UK supply chain. They also highlight export opportunities to other nations.
The military satellite contract decision is expected within months, and will signal how the UK government balances domestic industry protection with international alliances. Stay updated on GrandGoldman.com for the latest business and defence news.
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