UNION bosses at aerospace giant BAE Systems have refused to rule out industrial action in response to the announced 1,000 job cuts.

After a review of workload and resources, BAE Systems' Air Systems business announced last week that 1,000 jobs would be cut from the firm's Warton and Samlesbury sites over the next two years.

"We hope to achieve the majority of these job losses by voluntary means, however we cannot rule out compulsory redundancies at some stage," said Air Systems group managing director, Nigel Whitehead.

Union convener for the manual workers at BAE, Neil Sheehan, said: "While the company refuses to rule out compulsory redundancies we will not rule out industrial action.

"We think that it is possible to make the cuts without making compulsory redundancies."

The move has been expected for months, and the firm claims it is the only way to ensure a viable future for the business.

BAE said 500 jobs will go this year and 500 by the end of next year, this includes 250 on-site sub-contractors who will leave the business by the end of 2004.

A spokesperson for BAE said: "The business can see a downturn in work in some areas over the next few years which means it will have too many people with particular skills."

However, Mr Sheenan added that the union believes that BAE is concentrating on the wrong type of work and needs to shift its attention towards civil aviation.

"BAE should also be looking at civil projects as well as military programmes.

"We could also do with a firm commitment from the Government about the future of the Typhoon Eurofighter.

"There is concern that if the strategy of the company does not change there could be job losses every year.

"Manufacturing has been in decline in Lancashire for the past decade, we do not want to see job losses every year."