The shutdown of bus maker Alexander Dennis (ADL) in Scotland to move to England is a 'political failure' which would be “catastrophic” for a region already facing economic difficulties, MSPs have been warned.
Earlier this month, the company announced it was considering relocating production from its Larbert and Camelon sites near Falkirk to Scarborough in North Yorkshire, citing cost-cutting reasons.
Union representatives told MSPs that while the proposal has not yet been finalised, the move could endanger approximately 400 Scottish jobs.
This news follows the loss of more than 400 jobs just a few miles away in Grangemouth, where the local oil refinery recently closed and was converted into an import terminal.
Derek Thomson, the Scotland regional secretary for trade union Unite told economy committee MSPs: “It’ll be catastrophic in Falkirk and Larbert to lose that amount of jobs.”
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"Our concern grows and grows by the day as there's no immediate plan coming forward."
And Robert Deavy, the senior organiser for manufacturing with GMB Scotland said the situation would require a political intervention to resolve.
“Speaking to our members, this is something that we as a union have been raising for some time – I’m pretty sure Unite have been as well,” he said.
“We believe that this is a political failure that now requires a political solution.
He added: “Now we need everyone to come together – trade unions, politicians and, really importantly, we need ADL involvement on this.”
The bus firm at the centre of a row over its move to England after receiving £90 million of public money for Scottish jobs had been offering a grain of hope of a reprieve for hundreds of jobs - following government intervention.
And the SNP-led Scottish Government and the Labour-led UK Government have agreed to establish a joint working group to discuss options to find a solution and avert job losses.
They are looking at how far they 'can push' the UK 'state aid' rules set out in the Subsidy Control Act 2022 to create a support package to save the 400 jobs.
Alexander Dennis has said that they are engaging with both governments "in good faith on the possibility of any intervention" and stressed that a final decision on the move had not yet been made.
The committee is due to take evidence from the bosses of ADL in a special session on Thursday.
The company, the unions said, is losing out on contracts to cheaper foreign alternatives as a result of their lower costs, with Mr Thomson calling for direct awards to be made from Government to the company and for workers to be paid until work on the contracts begins.
“What we understand is that pending those direct awards or contracts being done, there is a four month gap between bringing those contracts online and the end of the consultation period,” he said.
“What we have been asking for and speaking to the Deputy First Minister about is a time-limited furlough scheme where we can support those workers through that period of the contract being awarded.”
Mr Thomson stressed, however, that ADL would need to agree to continue production in Scotland, rather than winning the contract and building the buses at Scarborough.
The union leader said the furlough cost is expected to be between £4 million and £5 million.
Speaking to journalists earlier this month, First Minister John Swinney said the Government was considering a furlough scheme.
Mr Deavy warned MSPs that, if the sites close, then “the skills are lost forever” in the area.
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