BUS manufacturer Alexander Dennis has announced that 115 jobs at its Falkirk base are at risk of being cut despite a government rescue bid.
The company announced last year that 400 jobs were at risk, but a multi-million furlough scheme was agreed with the Scottish Government in September to help protect roles.
However, Alexander Dennis has said that up to 115 roles would be placed at risk of potential redundancy with a consultation being announced.
Plans unveiled included the conversion of its Larbert manufacturing facility to a chassis manufacturing site, supporting all of its low-emission and zero-emission bus products, while the company would close its facility in Falkirk.
Paul Davies, Alexander Dennis’s president and managing director, said in a statement that the firm is proposing to retain jobs and restart manufacturing at Larbert with a focus on chassis manufacturing.
READ MORE: Ex-SNP councillor under investigation over alleged sexual offences
Adding that the decision “represents the best possible outcome” for the business, employees, customers and supply chain partners.
“This new approach would enable us to better align with the current market whilst improving our efficiency. It also allows us to continue to adapt to rapidly changing and challenging market dynamics,” he said.
Davies added: “We remain grateful to the Scottish government for the furlough scheme support to secure these jobs, maintaining skills and manufacturing capability in central Scotland. We will continue to work with the Scottish Government, its agencies and the trade unions to support staff during the consultation period.
“We are absolutely committed to doing the right thing by our team members and our stakeholders to protect jobs, invest in our business and maintain strategically important manufacturing capability in Scotland.”
Last week, it was announced that the firm was due to receive orders for more than 100 zero-emission vehicles through a Scottish Government scheme.
Transport Scotland announced last Wednesday that £45 million in Government cash for five bus operators, with Rock Road and Lothian Buses set to purchase from the Falkirk-based manufacturer.
Last year, the Scottish Government was forced to step in to fund a furlough scheme for staff at Alexander Dennis after the firm announced it was considering consolidating its operations at a single site in Yorkshire, putting around 400 jobs at risk.
At the time, bosses said the firm would need to see an increase in orders if it was to become sustainable in the central belt.
First Minister John Swinney pledged approximately £4m in funding towards the furlough scheme until work could recommence at the Falkirk site back in September.
In order to access the funding, Alexander Dennis had to provide evidence of sufficient orders to sustain its operations in Scotland.
It is understood that about 85 employees have since left the business.
Following the consultation announcement, Deputy First Minister Kate Forbes has called on the UK Government to “urgently deliver” on the promises made to Alexander Dennis and help secure vital manufacturing jobs in Scotland.
Forbes said promises by the Labour administration included reforms to procurement and subsidy control legislation, which would allow more work and contracts to go directly to Scottish firms, like Alexander Dennis.
“For many months, the Scottish Government worked intensively with Alexander Dennis and the workforce to secure the company’s future, protect jobs, skills, and industrial capability in Scotland,” she said.
The Deputy First Minister added: “Meanwhile, the UK Government has been sitting on its hands when it comes to the policy levers which would make a vital difference to order numbers at Alexander Dennis and support domestic bus manufacturing in Scotland.
“Labour ministers are shamefully silent on the promises they made, including changes to current procurement rules which favour foreign competitors, something the Scottish Government and trade unions have consistently called for.
“It is vital that the UK Government ensures a long-term pipeline of orders and a supportive approach to reserved matters such as subsidy and procurement. A first step would be changes to the Subsidy Control Act 2022 in order to create that pathway for procurement reform. The future viability of companies such as Alexander Dennis with a long history and commitment to Scotland depends on the UK Government to acting now.”
READ MORE: Reform plan to stuff Lords with '900 peers' to push through deportation plans
Brian Leishman, Labour MP for Alloa and Grangemouth, said that the redundancies and a reduction to operations at Alexander Dennis is a “devastating blow” to workers who have been in “limbo” for the past six months.
“The SNP Scottish Government must take responsibility for failing to protect Scottish workers, communities and industry,” he added.
“The SNP knew this problem was coming, and they should have acted in a way that would have helped secure the long-term future of Scottish bus manufacturing.
“John Swinney had been warned by Alexander Dennis in 2024 that his government’s decisions about where they ordered buses from would put the future of the industry at risk.
“Compare and contrast the SNP’s actions with Andy Burnham from Greater Manchester, who operates under the same UK legal framework.
“The Labour mayor placed significantly more orders with British bus manufacturers compared to the SNP Scottish Government who just a week ago, committed to ordering more buses from a Chinese firm in the £45m third Scottish Zero Emission Bus Challenge Fund (ScotZEB3).
“That is taxpayer money going abroad instead of supporting domestic manufacturing. Shame on the SNP for their betrayal of Scottish workers.”
Share