Marconi hit by strike rumors

Some labor unions representing Marconi workers reportedly are considering striking against the beleaguered equipment vendor after the company announced a work-force reduction of 600 in the United Kingdom

Marconi hopes to achieve the reduction, which was announced last Tuesday, through employees voluntarily stepping down. According to reports, some unions doubt that the reduction can be achieved through these methods.

“Our representatives no longer trust Marconi and are talking seriously about calling a strike unless the company shows greater flexibility and openness,” a representative with the Manufacturing Science Finance union was quoted as saying in The Financial Times.

A representative from the Amalgamated Engineers & Electrical Union, however, discounted talk of such actions. Though he did not have all the information regarding today’s meeting, a strike is “not something that we envisage at this stage,” he said.

A spokesman for Marconi agreed that talk of a strike is overblown. The company conducted a productive scheduled meeting with union representatives today, he said.

“I don’t think [a strike] is a practical possibility,” he said. “We’ve agreed with the trade unions to continue to work in partnership to ensure the stabilization of the business in the short term.”

Indeed, stabilization is exactly what Marconi needs. The company has announced 10,000 layoffs this year and recently ousted both its chairman and CEO after two earnings warnings. Marconi’s stock last traded at $1.07 per share on the Nasdaq exchange, and a prolonged labor dispute could be devastating for the company.