Sacked Scots ferry fiasco firm chief set to get huge pay off

Loss-making Ferguson Marine, which relies on public fund has brought in a new external PR agency that has been handling the scandal over the 'unacceptable' public spending of the Water Industry Commission for Scotland to handle Mr Tydeman's departure.  They refused to discuss  what the pay off would be.

A spokesman would only say: "He will receive what he is legally entitled."

It comes as Mr Tydeman received around £57,500 for the first two months of his appointment - over £20,000 more than the pro-rata rate.

READ MORE: Ferguson Marine: ScotGov firm admits 'significant doubt' over future

Ferguson Marine's financial records do not show that Mr Tydeman received any further bonuses in the two months and that the payment was pure salary.

But it was confirmed that the extra payments in terms of salary were given in the form of "recruitment costs" and a relocation package for Mr Tydeman establishing a base in the local area.

It emerged that he was eligible to gain a 30% bonus for the financial year of 2022/23 - although it at the time it had yet to be finally agreed. It was later confirmed that he received almost £40,000 in bonuses in the year and would be eligible for more.

The Scottish Government has said any more delays are “unacceptable”.

Andrew Miller, the chairman of Ferguson Marine said it needed "strong leadership" to ensure its long-term future.

Ministers have expressed regular concern at increases in costs and delays in the chief executive's quarterly updates.

Wellbeing economy secretary Mairi McAllan said was a matter for the board and confirmed that it came amidst of new delays over the delivery of the first of two lifeline vessels Glen Sannox.

She added: “I am focused on the Scottish Government’s priorities of completing the two ferries, ensuring [Ferguson Marine] drives down on costs, and securing a sustainable future for the yard and its skilled workforce.

“While the yard had previously stated that the delivery date for Glen Sannox was planned for late May, we are aware that, in the last week, the outgoing CEO intimated further delay was likely.

“That is unacceptable. I know the board are intent on doing everything they can to ensure that delay does not happen.

"I will be stressing to the new interim CEO and the board the importance of the ferries entering service to our island communities as soon as possible.”

Costs continue to soar over new ferries Glen Sannox and Glen Rosa being built at the Inverclyde yard, which were due online in the first half of 2018, with one initially to serve Arran and the other to serve the Skye triangle routes to North Uist and Harris, but are at least six years late, with costs expected to be quadruple the original £97m contract. It has been confirmed that both are now to serve Arran.

Glen Sannox, was launched by Nicola Sturgeon nearly seven years ago and is not expected to be ready till July at the earliest.

Glen Rosa was meant to be delivered to CalMac in August 2018, but that is currently scheduled for May 2025.

But the dates of arrival have been constantly in a state of flux as their construction has been plagued by design challenges, cost overruns and delays.

In the midst of the delays and soaring costs, Ferguson Marine under the control of tycoon Jim McColl fell into administration and was nationalised at the end of 2019 with CMAL and the yard's management blaming each other.

A ferry user group spokesman said that there should be serious questions asked about how Ferguson Marine operates if there is a pay off while islanders are left "bamboozled over when or if the ferries will ever set sail".

He said: "Nobody in the real world gets a pay off after being sacked, so on the surface it does not make any sense as does the Ferguson Marine's bonus scheme which was supposed to have been reviewed. Little has been said of that.  But all in all it is a highly unsavoury affair."

Mr Tydeman is being replaced by fourth generation shipbuilder John Petticrew as interim chief executive.

According to Ferguson Marine Mr Petticrew has a "long career in shipbuilding and infrastructure construction with over 40 years of experience, spanning three different continents".

Scottish Conservative shadow transport minister Graham Simpson said Mr Tydeman was the "latest scapegoat for the SNP’s ferries scandal and they must urgently offer an explanation as to why he’s been fired".

He said: “The only people not held accountable are those who are most responsible: the SNP Government. It beggars belief that not a single ministerial resignation has been offered when the buck stops with them for years of grotesque mismanagement of Scotland’s ferry network.

GMB Scotland, the biggest union at Ferguson Marine, said the workforce now deserves stability, new contracts and a secure future.

In 2022, a number of Ferguson Marine workers who took part in an informal meeting with MSPs praised Mr Tydeman’s leadership and compared him favourably to the shipyard’s previous management, saying he “talked sense”.

Mr Tydeman was at the centre of controversy when the Herald revealed last year he got an estimated £20,000 golden hello while standing to gain up to £80,000 in bonus payments.

The Ferguson Marine Glasgow (Port Glasgow) chief executive received £1000 a day for just over eight weeks work at the start of his time with the nationalised company thanks to a salary boost.

It led to new concerns about the bonus culture at the shipyard firm delivering two long-delayed ferries which has received over £450m of public money and led to new calls for a public inquiry.

The chairman of FMPG said in the summer of last year that controversial bonuses were expected to continue to be paid - despite the First Minister saying at the end of April, last year he did not expect them to continue.

A secret bonus bill to Ferguson Marine management reached £134,218 over two years, while the two ferries remained undelivered.

Mr Tydeman, who was on a £205,000-a-year basic salary received around £57,500 for the first two months of his appointment - over £20,000 more than the pro-rata rate.

But it was confirmed that the extra payments in terms of salary were given in the form of "recruitment costs" and a relocation package for Mr Tydeman establishing a base in the local area.

The bonus culture concerns came in the wake of an outcry over the more than £2000-a-day remuneration, made up of fees and expenses given to Ferguson Marine's previous Scottish Government-appointed turnaround director Tim Hair who left his post in February, 2022.

The Scottish Government defended the payments to Mr Hair as being "in the middle of the industry norm".

Mr Tydeman's 30% bonus package had previously been kept secret by the shipyard firm, and blocked in at least one Freedom of Information request.

But a confidential memo from the Scottish Government's commercial interventions department on Mr Tydeman's remuneration package states that recruitment consultants had advised them that elements of his pay package including relocation allowance and bonus arrangements were "expected" for an "appointment of this kind".

It had already been confirmed that £87,000 had been paid to certain members of the management team for performance in 2021/22 with a further £47,000 more expected in 2022/23. And the Ferguson Marine chairman has said that it is perfectly reasonable that performance payments continue to be paid into this financial year.

Ferguson Marine is due to submit a new business case for this to the Government by the end of this month that aims to transition the yard away from the delivery of the ferries into projects.

Ministers have been under pressure to rescue Ferguson's with £25m of support after it was revealed that their advisers backed moves to secure the nationalised shipyard's future.

The Scottish Government has withheld financial support for the Port Glasgow yard despite its advisers being in favour of a support package to secure its future.

The board at Ferguson's has stated that a failure to get a committed investment of £25m to support future work casts "significant doubt" on its ability to continue.

And it has placed a question mark over hopes to win a contract from Transport Scotland for the replacement of up to seven ageing ferries vessels serving the Clyde and Hebrides.