Around 130 Dumfries and Galloway jobs under threat at Stagecoach West Scotland
The firm is considering its future in the region as it believes contracts will not be renewed following concerns about a new liability clause.
Around 130 jobs are under threat at Stagecoach West Scotland.
The bus operator's existing contracts for school transport and council subsidised routes across Dumfries and Galloway are due to expire in a few months.
But the firm is now considering its future in the region as it believes the deals will not be renewed following concerns about a new liability clause.
That could see depots in Dumfries and Stranraer closed, which South Scotland Labour MSP Colin Smyth claims would result in up to 130 jobs being lost.
He said: 'If Stagecoach go ahead with their threat to withdraw from the region, this would be devastating news for the workforce – my thoughts are with every employee now facing uncertainty about their future.
'Stagecoach's possible exit would be a hammer blow to public transport in our region and utterly decimate local bus services.
'Having squeezed out competition over the years, Stagecoach know full well this would leave many communities cut off and pupils unable to get to school after the summer.
'To abandon local jobs and lifeline services while clinging onto the profitable routes from afar would be the height of corporate irresponsibility.
'I urge Stagecoach to think again. In the meantime, I've already raised this urgently with the Cabinet Secretary for Transport and will be pressing the Scottish Government and the council to step in put in place alternative operators for these vital services.
'But let's be clear – with Stagecoach running the vast majority of bus routes in the region, I do not underestimate how difficult that will be.'
Stagecoach runs a number of routes across Dumfries and Galloway, including services from Dumfries to Lockerbie, Moffat, Castle Douglas and Stranraer.
Mr Smyth says he has been told by workers the firm would plan to continue some routes – such as services in Dumfries town and the Dumfries to Glasgow X74 – and these could be run from central belt depots.
A Stagecoach West Scotland spokesperson said: 'The majority of the bus services Stagecoach operates in Dumfries and Galloway are under a contract arrangement with SWestrans which are due to expire in August 2025.
'Dumfries and Galloway Council have managed a tender process on behalf of SWestrans, which we have participated in. As part of our due diligence reviewing the terms of the contracts being tendered, we have identified a liability clause that is far in excess of the value of the contracts on offer.
'Stagecoach is unfortunately unable to agree to a contract on these disproportionate terms, and we have now notified the council. It is our understanding that our bids will not be recommended for award.
'We are now reviewing the impact of this on our local network of services and the significant number of staff we employ in the region at our Dumfries and Stranraer depots.
'Stagecoach West Scotland remains committed to keeping people in the community connected while we identify the impact of the tender process. We will provide an update on this when it is appropriate.'
A council spokesman said: 'As part of the tender process, the council and SWestrans need to ensure that we have bus operators that meet minimum requirements on a range of industry-standard terms and conditions. This is in order to protect the public interest.
'Dumfries and Galloway Council and SWestrans continue to work through a tender process that has supporting and connecting the communities of Dumfries and Galloway firmly at its heart.
'The council takes its statutory duties to provide those children entitled to school transport extremely seriously and are committed to ensuring all school transport routes are operational for the start of the school year in August, with these routes being given priority. In addition, the council and SWestrans are committed to providing a well-connected local bus network.
'These long-term contracts will provide bus operators with certainty and stability in a market that is increasingly fragile and unsustainable.
'The evaluation, clarification and negotiations relating to tenders received from bus operators is ongoing and confidential.
'With this in mind, it would be inappropriate to comment further at this stage.'
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