Stop Heathrow Expansion casts doubt on Heathrow’s 3rd Runway jobs claims, from past experience

Local group, Stop Heathrow Expansion (SHE) has unearthed figures which throw into question the claims Heathrow is making about the number of jobs a third runway will create.  Stop Heathrow Expansion, which represents people in the Heathrow villages, some of whom work at the airport, says Heathrow are hiding behind a wall of secrecy over exactly how many jobs Terminal Five, the last major development at the airport, actually created. The report of the public inquiry inspector which gave the green light to the 5th terminal in March 1999 concluded that by 2016 the terminal would provide an additional 16,000 on-airport jobs. Heathrow has told SHE that it cannot confirm the actual number of jobs which have been created because “finding out would be a substantial piece of work in its own right.” Heathrow annual reports indicate there were 6,714 staff  employed in UK Continuing operations in year ended 31.12.2015 and 7,354 staff in year ended 31.12 2013 (ie. 9% lower) and 7,406 in year ended 31.12.2012.  Heathrow said that in July 2013, 76,600 were directly employed on the Heathrow site. The Airports Commission’s Final Report said the Heathrow NW runway would generate around 75,000-78,000 in 2050.”(and an additional 59-77,000 jobs in 2030).
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Campaign group unearths figures which cast doubt on Heathrow’s 3rd Runway jobs claims

2 October 2016 (Stop Heathrow Expansion press release)

Local group, Stop Heathrow Expansion (SHE) has unearthed figures which throw into question the claims Heathrow Airport is making about the number of jobs a third runway will create.  Stop Heathrow Expansion, which represents people in the Heathrow villages, some of whom work at the airport, has released information which reveals that Heathrow are hiding behind a wall of secrecy over exactly how many jobs Terminal Five, the last major development at the airport, actually created.

The report of the public inquiry inspector which gave the green light to the 5th terminal concluded that by 2016 the terminal would provide an additional 16,000 on-airport jobs. Heathrow has told the campaign group that it cannot confirm the actual number of jobs which have been created because “finding out would be a substantial piece of work in its own right.”

At the Conservative Party Conference which starts today in Birmingham, Heathrow released details of its “Brexit Boost Plan”, which it argues will create tens of thousands of new jobs across the UK if permission for a third runway is granted. Yet these unearthed figures by Stop Heathrow Expansion suggest Heathrow’s predictions are to be treated with extreme caution.

Robert Barnstone, Campaign Co-Ordinator of Stop Heathrow Expansion, said: “Heathrow’s refusal to say how many jobs were created at Terminal Five shows that serious questions need to be asked about the employment claims they are making in relation to the third runway.”

This comes just months after it emerged Heathrow aimed to have a third of its employees on salary packages about 30% lower than the existing terms and condition by the end of 2018 (2).

ENDS

The number employed by Heathrow Airport Ltd in 2012 was 5,278 (compared to 5,265 in 2011 and 5,148 in 2010).  Heathrow said that in July 2013, 76,600 were directly employed on the Heathrow site.  (The source of those numbers has been removed from Heathrow’s website, so cannot be checked).

Heathrow says “Up to 40,000 jobs in the local area are expected to be created in the area with expansion and double the apprenticeships at Heathrow, to a total of 10,000 by 2030.” (but gives no date for the 40,000 to happen). Link 

Total direct on-airport employment at Heathrow was 76,640 in 2009 which supported a passenger throughput of 65.9 million passengers per annum (mppa). Link 

 

(1)  Stop Heathrow Expansion gives a voice to the people in the five Heathrow villages that would be most impacted by a third runway.  If the third runway went ahead almost 4,000 homes would be rendered unliveable. A number of the residents work at the airport.

(2)  https://www.ft.com/content/327541f4-7d6d-11e5-a1fe-567b37f80b64

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Heathrow’s Annual reports give these employee figures, showing falling numbers at the airport:

6,714 staff in UK Continuing operations in year ended 31.12.2015 Link 

7,354 staff in UK Continuing operations in year ended 31.12 2013  Link

7,406 staff in UK Continuing operations in year ended 31.12 2012


The Airports Commission Final Report said:

“Heathrow Airport is situated in an area of West London in which unemployment is relatively high. Expansion at Heathrow would drive a substantial increase in employment at and around the airport, generating an additional 59-77,000 jobs in 2030 for local people and for the fast-growing wider population in London and the South East, including for black and minority ethnic communities for whom Heathrow is an important employer.”  (P 25)

and

“Adding runway capacity at Heathrow is forecast to deliver significant growth in local employment through additional direct, indirect and induced jobs, totalling around 64,000-66,000 (Extended Northern Runway scheme) or 75,000-78,000 (Northwest Runway scheme) in 2050.”  (P 127)

and the Commission says:

Footnote to explain direct, indirect and induced jobs:

“The pilot of a new flight enabled by airport expansion is working in a direct job; the delivery driver for the expanded catering company that supplies the food to the new flight is in an indirect job; and the barista in the coffee shop that opens to cater for the increased numbers of people around the airport is in an induced job. These jobs are likely to be additional in the local area, but not necessarily additional at national level as they may be generated by activity displaced from another area of the country.”

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The Financial Times story of  28.10.2015   says

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[John Holland-Kaye’s] comments came as Heathrow announced a 4.1 % rise in turnover to £2.07bn for the nine months to September 30. The number of travellers passing through its terminals rose 2.3 per cent to a record 56.9m on the back of a good summer.

Heathrow said it continued to make progress in reducing its overheads. It has agreed a plan with the UK’s aviation regulator to remove £600m of costs during the five years between 2014 and 2018. It has already secured £400m of cost efficiencies.

Mr Holland-Kaye said the renegotiation of its defined benefit pension plan, which came into effect from October 1, would further improve costs. The changes include the introduction of an annual cap of 2% on future increases to pensionable pay for active members, resulting in a one-off reduction of £236m in the scheme’s liabilities.

It is also looking to make more savings on employee costs. By the end of 2018, Heathrow aims to have about a third of its employees on salary packages that are about 30% lower than existing terms and conditions.

https://www.ft.com/content/327541f4-7d6d-11e5-a1fe-567b37f80b64

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