HUNDREDS of jobs have been saved at engineering firm BiFab after the Scottish Government stepped in to help settle the dispute.

Burntisland Fabrications (BiFab) had been at threat of going into administration, putting at risk 1400 jobs at its sites in Burntisland and Methil in Fife, and in Arnish on the Isle of Lewis.

BiFab were in dispute with offshore contractor Seaway Heavy Lifting (SHL) and Scottish and Southern Energy (SSE) over unpaid bills.

Unions said SNH reneged on a payment for an already completed windfarm, part of a project involving SSE.

A financial package to complete the contract has now been provided by SHL, SSE and the partners to the Beatrice Offshore Windfarm project, JCE Offshore.

The commercial agreement will see BiFab receive payments to alleviate immediate cash flow issues enabling the threat of administration to be lifted and ensuring the full funding of the Beatrice contract.

The Scottish Government has also indicated that it will, if necessary, make available a commercial loan facility to BiFab.

First Minister Nicola Sturgeon ended a UN trip early to help the Scottish Government bring the parties round the table.

Sturgeon said: “I am pleased that after an extensive series of talks over the last week and two days of intense negotiations we have been able to broker a commercial agreement that lifts the threat of administration from BiFab and allows work on the current contract to continue.

“In particular I welcome the moves made by Seaway Heavy Lifting, SSE and the partners in the Beatrice Project, JCE Offshore and Siemens to resolve this situation and enable BiFab to continue its work on this contract.

“Over the last seven days we have worked to ensure all partners understood the urgency of the position BiFab found themselves in and the part they could play in relieving the financial pressure on the company.

"Seaway Heavy Lifting and SSE in particular have chosen to back BiFab today to complete their contract and that is a real vote of confidence in the company and the workforce.

“I know that this has been an anxious time for people employed at BiFab, as well as their families and the wider communities of Burntisland, Methil and Arnish and the trade unions have ensured that the importance of this company was made clear to all companies involved.

“All companies including BiFab have had to take difficult decisions to secure this outcome. While this deal lifts the immediate threat of administration, we recognise that there is a lot of work still to do to secure the long term position.

"Ministers will continue to work with BiFab, the trade unions and industry partners to identify ways to secure the long term future of renewables manufacturing on these sites.”

Earlier this week hundreds of workers took to the streets of Edinburghs, calling for support from the Government to help resolve the dispute.