400 jobs at risk as Alexander Dennis seeks to ‘consolidate' bus manufacturing
The Scottish-headquartered company said it is looking at 'consolidating its UK bus body manufacturing operations' in Scarborough, North Yorkshire.
This would mean its manufacturing facility in Falkirk – which Alexander Dennis said had 'already been reduced in recent years' – would close.
In addition the firm said the production lines in Larbert, where it also has its global HQ, would be suspended when current contracts are completed.
Alexander Dennis said the changes would lower costs and increase efficiencies.
But it added up to 400 jobs – about 22% of its workforce – would now be at potential risk of redundancy.
Scottish Deputy First Minister Kate Forbes said: 'This will be a hugely worrying time for the workforce at Alexander Dennis, their families and the wider community.'
She said the Scottish Government has in recent weeks 'engaged extensively' with the company and its parent firm NFI to 'understand the issues and ensure that every possible avenue is explored to mitigate the need for redundancies'.
Ms Forbes and Scottish First Minister John Swinney have been involved in these talks, along with representatives from Scottish Enterprise, Transport Scotland and the UK Government.
Vehicles for the 'Bee Network' of buses in Greater Manchester were built by Alexander Dennis (Andrew Milligan/PA)
Ms Forbes pledged: 'The Scottish Government will continue to explore any and all options throughout the consultation period to allow the firm to retain their hard-working employees and manufacturing and production facilities at Falkirk and Larbert.'
She added that in the event of job losses, the Scottish Government would provide support through its Partnership Action for Continuing Employment (Pace) initiative.
Paul Davies, Alexander Dennis president and managing director, said the firm is proposing a UK manufacturing strategy 'to underpin financial sustainability and lower operating costs in the face of changing and challenging market dynamics'.
With Alexander Dennis dating back to 1895, Mr Davies stressed bosses 'firmly believe in our people, products and business'.
But he added: 'We must take significant action to drive efficiency to allow our operating model to be competitive.
Both the Scottish First Minister John Swinney and his Deputy First Minister Kate Forbes have been involved in talks over the future of Alexander Dennis. (Jane Barlow/PA)
'It is extremely regrettable that as part of this, we must place jobs at potential risk of redundancy and propose to cease manufacturing operations at some of our facilities.'
Mr Davies said this is necessary because 'the stark reality is that current UK policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit'.
He added: 'We have warned of the competitive imbalance for some time and would like to see policy and legislative changes that incentivise the delivery of local benefit where taxpayer money is invested.
'We strongly believe funding that supports public transport should lead to investment in local jobs, domestic supply chains, technology creation and a recurrent tax base.
'It is our hope that the forthcoming industrial strategy will provide reassurance that there is value in manufacturing within the borders of the UK and we remain hopeful of policy and legislative changes that increase the UK's focus on support for domestic manufacturing.
'Our new strategy would allow us to respond appropriately to increase local production if structural changes are made.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald Scotland
4 hours ago
- The Herald Scotland
UWS lecturers to be balloted on strike action over job cuts
The university, which has campuses in Paisley, Ayr, Dumfries, Hamilton and London, had a deficit of £14.4m in 2023/24 and is expected to post an £8.4m deficit for the current financial year. The EIS union is looking to secure a guarantee that there will be no compulsory redundancies as part of the process, with a consultative ballot showing support for strike action if that guarantee is not made. Read More: The union said it has held "unproductive discussions with university management" over the changes and the announcement of job cuts. It has now announced that its members will be balloted on a strike, opening on Monday, June 23, and to close at 12:00 PM on Tuesday, July 22. Garry Ross, EIS National Officer for Higher Education, condemned the university's approach, stating, "It is deeply regrettable that the University of the West of Scotland has chosen to make this large number of job cuts and pushed staff to the point of balloting for strike action. The proposed redundancies are a short-sighted and a damaging strategy that will have a devastating impact on the livelihoods of dedicated staff, many of whom have worked at UWS for years. "Furthermore, it will inevitably lead to a decline in the academic provision, research capacity, and overall student experience at the university. We urge UWS to step back from this path and engage meaningfully with the EIS ULA (University Lecturers Alliance) to secure a no compulsory redundancy guarantee. "The EIS ULA branch at UWS has a strong mandate from its members to move to this statutory ballot, with a previous consultative ballot showing overwhelming support for strike action if a no compulsory redundancy guarantee was not secured. "Members are resolute in their commitment to protect jobs and ensure the continued excellence of UWS as a vital institution within the Scottish higher education landscape. "The EIS ULA calls upon UWS management to reconsider its position on any planned redundancies and enter into negotiations aimed at achieving a fair and equitable resolution to their dispute that safeguards jobs and protects the future of the university. "The union remains committed to finding a negotiated settlement but is determined to win the ballot and will not hesitate to take industrial action if necessary to defend its members and the integrity of academic provision at the University of the West of Scotland." A UWS spokesperson said: "Our organisational change project is designed to put our university finances on a more sustainable footing, to enable an even better student experience and enhanced graduate outcomes. "In common with the rest of the higher education sector across the UK, the university is operating in a very challenging financial environment exacerbated by external factors that have driven a significant change in the size and shape of our student population, and the associated funding."
Daily Record
11 hours ago
- Daily Record
Celtic see Matt O'Riley windfall put in major jeopardy as 'preferred' suitor performs £30m Brighton transfer trick
A host of Italian clubs are on alert despite the Premier League side remaining keen to keep the playmaker at the AMEX In-demand Matt O'Riley has reportedly told Brighton he would prefer to join Roma this summer if he leaves the club. But that could leave Celtic's sell-on windfall at risk with the Serie A giants looking to avoid a major Financial Fair Play pitfall. The Hoops have already seen the Parkhead coffers boosted this summer by a sell-on windfall after Jeremie Frimpong 's move to Liverpool from Bayer Leverkusen. And the Scottish champions powerbrokers are on alert again amid reports that Napoli made a £25.6million (€30million) offer for the Danish international just 12 months on from his £25million Parkhead exit. Celtic hold a 10 per cent sell-on clause in the deal that took the 24-year-old to the AMEX Stadium last season - but the Seagulls are said to be in no rush to sell with talks "ongoing" over a deal. La Gazzetta dello Sport now claim Roma have already made contact with the midfielder's entourage with O'Riley "eager" to join the club. However, I Giallorossi are said to be 'formulating" a loan offer with obligation to buy next summer - with Brighton demanding £30million for the playmaker. It is noted that Roma are currently focussed on selling players to balance the books before the June 30 FFP deadline. O'Riley is said to be willing to wait for a move to link up with Gian Piero Gasperini - who is a big fan of the player having previously attempted to bring him to Atalanta from Celtic. O'Riley endured an injury-hampered debut campaign at the AMEX Stadium but showed flashes of his best form in the final weeks of the season. But the man himself has bemoaned the fact he's been unable to play in his favoured position under head coach Fabian Hurzeler - with Georginio Rutter deployed in the playmaker role. Speaking in his homeland, the Denmark international said: "I am not completely happy, and I am just giving my opinion. 'It makes it difficult to show off when you play a position you are not completely happy with. I can play better for the team if I play the number eight position, but I can play well in other positions. "You can say it in a way that is not aggressive. If you are honest with another person, you don't lose anything. The coach can always say he doesn't agree." You can get all the news you need on our dedicated Rangers and Celtic pages, and sign up to our newsletters to make sure you never miss a beat throughout the season. We're also on WhatsApp, where we bring all the latest breaking news and transfer gossip directly to your phone. Join our Rangers community here and our Celtic community here.
The Herald Scotland
12 hours ago
- The Herald Scotland
Family sells famed Scottish hotel where Romantics stayed
We revealed the sale of the hotel, visited by Dorothy Wordsworth and John Keats, this week. The hotel is renowned. (Image: Cornerstone Business Agents) The inn, which has operated since 1780, was also a regular stop-off point for Queen Victoria. The Cairndow Stagecoach Inn on the shore of Loch Fyne is described as one of the Highlands' oldest coaching inns. Cornerstone Business Agents said: 'We are delighted to have concluded the sale of the Cairndow Stagecoach Inn on behalf of the Fraser family.' Read the full story here Scottish business which worked on Liverpool FC's Anfield eyes growth Derek Pierce of J&D Pierce. (Image: Mike Wilkinson) One of Scotland's largest structural steel fabricators, which has worked on projects including the redevelopment of Glasgow Queen Street railway station and Liverpool FC's Anfield stadium, is gearing up for major expansion as it celebrates its 50th anniversary. J&D Pierce Contracts, based at Glengarnock in Ayrshire and 80%-owned by Swedish investment group Storskogen, expects annual turnover to rise towards £200 million as it capitalises on 'growth in key sectors including data centres, distribution hubs, distilleries, stadia and arenas, transport infrastructure, and the social and supply chain requirements related to renewable energy'. Accounts filed with Companies House last July show the turnover of J&D Pierce Contracts was £103.8 million in the year to December 31, 2023. Read Ian McConnell's story here BUSINESS INSIGHT 📈 Premier Inn bosses upbeat as hotels planned for Edinburgh Whitbread's Premier Inn portfolio spans hundreds of hotels in the UK and Germany. (Image: PA) Whitbread underlined the challenges facing the hotel sector today as it reported Premier Inn UK sales had dipped in the first quarter, with London showing a sharper decline than other parts of the country.
