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Continuing uncertainty from the Ministry of Defence surrounding a new mini tank is costing Welsh jobs, Islywn’s Member of Parliament has said.

As many as 60 people could lose their jobs at defence firm General Dynamics, which is struggling to fulfil a £5.5bn order for 589 Ajax tanks.

The US weapons manufacturer said jobs were at risk at its Oakdale and Merthyr Tydfil factories – where the company has designed and manufactures the tanks.

Around 800 people work across the two sites.

Labour’s Islwyn MP Chris Evans, who is also Shadow Defence Procurement Minister, has met with representatives from Unite the Union and senior management at the Merthyr site.

He said: “The loss of 60 jobs across the Merthyr and Oakdale sites is clearly a result of the uncertainty over the Ajax programme. 

“A recent report from the National Audit Office was hugely critical of the way the Ministry of Defence have managed the Ajax project claiming it has been ‘flawed from the start’.  

“The culture of paralysis and delay within the Ministry of Defence is risking highly skilled and well-paid jobs in Wales. I have written to the Minister to stress the importance of these jobs to our local economy.

“Morale at the site is also being deeply impacted by the lack of news from the MoD. This situation cannot go on, the Government needs to be clear about the future of this crucial project. I will continue to talk with the unions as they support workers at the sites.”

Significant challenge

Last month a National Audit Office report said delivering the programme would be a “significant challenge”.

The tanks should have been in service by 2017, but problems relating to excessive noise and vibrations within them has seen the project pushed back. The latest date set would see the tanks in full service by April 2025 – although the MoD has admitted it is not confident this will be met.

As of last month, General Dynamics has so far built 324 hulls, and assembled and completed factory acceptance testing of 143 vehicles. The MoD has received just 26 Ajax vehicles and has so far paid General Dynamics £3.5bn.

Trials involving Army crews have stopped as soldiers involved have been injured.

In September last year the MoD admitted that more than 300 soldiers were being assessed for hearing loss after testing the tanks.

A final decision on whether the project will be scrapped could be made by the end of this year.

General Dynamics “committed” to Ajax

A spokesperson for General Dynamics UK said: “We remain committed to delivering the Ajax Programme to the British Army. We are engaging directly with those affected employees and Unite as we undertake this process.”

Union Unite said is it engaged in a formal consultation at Merthyr Tydfil, however there is no trade union recognition at Oakdale – meaning it is not involved there.

The Labour MP for Merthyr and Rhymney Gerald Jones said: “This announcement is a real blow for our communities.

“I will be meeting with the trade unions shortly to discuss this shock announcement and how staff can be best supported.”