Thales faces potential strike in UK as Unite members reject pay offer

Trade union Unite has announced that around 300 of its members at defence prime Thales have voted strongly in favour of strike action in a dispute over pay.

The ballot encompassed staff at Thales’ sites in Govan, Glasgow and at its Reading headquarters.

According to Unite, the workers rejected a pay increase described as being below the current rate of inflation.

Negotiations between the union and Thales are expected to continue, with further talks scheduled in a final effort to avert a walkout.

The union stated that strike action could be formally announced if these talks do not result in an agreement.

Workers included in the dispute are electronics, software and systems engineers, along with manufacturing and mechanical technicians.

The company plays a significant role as the Royal Navy’s sole supplier of periscopes and optronics masts.

Recent business activity at Thales has seen the Ministry of Defence announce export deals valued at £1.1bn ($1.4bn), which the company says maintain hundreds of jobs in Glasgow.

The dispute comes despite Thales UK continuing to report strong financial results over the past years.

The company’s combined operating profits reached £179.3m across 2023 and 2024.

In the first quarter of fiscal 2026, Thales’ group order intake rose by 23% to €4.7bn. The UK market recorded a 1% increase on a reported basis and 6% growth organically.

During the same period, overall sales grew organically by 9.7%, with the United Kingdom’s growth cited at 15.4%.

Unite general secretary Sharon Graham said: “Thales is an extremely profitable company who could end this dispute at any moment. It can easily afford a fair pay increase for their skilled and valuable workforce who are the ones helping to make huge profits for the company. Instead, Thales is putting greed above treating its workforce with decency.”