MICHELIN will not reconsider its decision to close its tyre factory in Dundee, but Derek Mackay has said the action group he convened after the shock announcement has an “unprecedented opportunity” to present a plan that would keep the company in the city.
The Finance Secretary was speaking in Dundee after the first meeting of the action group – comprising leading manufacturing industry and commercial figures, local and national politicians and trade unions – which he described as “constructive”, with “everyone working in partnership”.
He said there was disappointment at the decision to shut the factory, which employs 845 people, but hope that something could be salvaged.
“There’s the sense still of disappointment about Michelin’s decision to close the plant and they’ve made it clear to me they don’t want to revisit that decision,” said Mackay.
“What they are interested in is a proposition that we can put to them.
“John Reid, the local plant manager said it’s unprecedented for Michelin to give such a hearing and then give a second one. Now if that’s unprecedented, they’ve described the actions of the Scottish Government as the most constructive and positive that they’ve ever had – Michelin as a company – in these circumstances.
“So, the mood is one of disappointment at Michelin’s decision but actually some hope that we can salvage something that will ensure Michelin could have a future and protecting those 845 workers at all costs.
“Positivity, a constructive approach, people willing to put their shoulder at the wheel. We don’t want to give false hope or raise expectations beyond what’s achievable but we’re working really hard, really energetically to try to get the best outcome we can by putting a case to Michelin to stay in Dundee.”
That could be any one of a number of options, including the retention of a manufacturing facility with a reduced workforce, which formed the basis of a flexibility plan drawn up by Unite.
The union’s regional officer, Bob MacGregor, told The National that proposal was still in play.
“That will be part of any plan moving forward,” he said.
“I think the plan is to present all options to Michelin so they can say which would make them stay in Dundee. The plan that Unite put forward did include job losses and we were clear about that but what we need to do is give Michelin a reason to stay in Dundee.”
John Alexander, leader of Dundee City Council, said Michelin had been clear about the rationale behind the closure plan – cheap Asian tyre imports – which is something the action group could not influence.
“But what we can influence is what the future of that plant in Dundee potentially looks like,” he said.
Alexander added that Michelin was in the city’s DNA and the closure move could not have come at a worse time. “The Dundee Michelin facility is part of the fabric of the city – it is in the DNA,” he said.
“I’ve always considered it to be a Dundee facility, not just part of a larger French conglomerate.
“The reality is the ripple effect this has is quite significant and at a time when we’re trying to revitalise, re-energise the local and regional economy this clearly sends the wrong message.
“We’re absolutely laser-focussed on getting a positive outcome for as many of those workers as we can and retaining of Michelin whatever that may look like. But we’re not shying away from the fact that they’ve made a decision and this is a significant uphill struggle to bring forward a proposal they’re going to go for.”
With only three weeks before a viable proposition has to be put to Michelin, the action group will meet again next Monday.
Mackay said he had repeated his call for the UK Government to match the Scottish Government’s funding of £200 million on the Tay Cities deal.
However, Scottish Secretary David Mundell, who is also on the action group, dismissed the call.
“The Scottish Government have chosen to put forward £200m,” he said. “Each government chooses what the level of the contribution is. I don’t criticise or assess their contribution, what I do is judge our contribution based on the projects that have come forward.”
Our sister paper The Sunday National revealed that, according to analysis released the day before workers were given the closure news, Michelin could save more than £40m by closing the Dundee factory as it accelerates plans to save more than £87m by 2020.
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