3 days ago
Lifeline for Alexander Dennis workers as SNP Government considers furlough scheme
More than 400 staff could lose their jobs if the bus manufacturer proceeds with a plan to close factories in Scotland and switch production to England.
Hundreds of workers who face redundancy from an historic bus manufacturer could be put on furlough under a plan being discussed by the SNP Government.
Alexander Dennis (ADL) sparked anger last month when the Falkirk-based firm announced plans to close its two factories at Camelon and Larbert and centralise production in England.
The company has now extended its 45-day consultation scheme with 400 workers who stand to lose their jobs if the shut-downs are rubber-stamped.
Shona Robison, the Finance Secretary, said today Government officials have raised the prospect of a furlough scheme with ADL which could avoid the need for compulsory redundancies.
The bus manufacturer, which has been based in Falkirk for more than a century, has blamed a shortage of orders for the environmentally-friendly double-decker vehicles it specialises in.
ADL recently completed more 160 buses for Greater Manchester's new Bee public transport network - and Labour has questioned why a similar order has not been made by a Scottish local authority.
In a letter to Holyrood's economy committee, Robison said: "The company has been clear there are a number of factors that impact on its decision about the future of its workforce in Scotland - the availability of orders both in the short and long term, changes to the regulatory landscape around procurement, and assistance in supporting a short-term company furlough scheme.
"The Scottish Government is continuing to work tirelessly on this issue, and is maintaining close contact with the company, the unions and the UK Government to understand all options to support the workforce.
"In relation to orders, the key issue is to establish greater confidence in demand for the double deck vehicles which ADL manufacture in Larbert.
"Given the relative size of the Scottish bus market, the English market for double deck vehicles is clearly critical. There are around 3,500 public sector vehicle buses operating in Scotland, with a split between double deck and single deck. Meanwhile there are around 30,000 such vehicles in the English market."
The SNP minister added: "Officials have met with ADL to discuss a potential company furlough scheme which, if progressed, would be the business's offer to its employees to prevent compulsory redundancies among the manufacturing workforce, and would be administered by the business.
"We are in discussions with ADL on the potential for the Government to support the company's scheme for a defined period."
Kenny MacAskill, Alba Party leader, said: "A furlough is fine and welcome. But ensuring orders is the solution and essential."
Unions have previously called for a two-week extension to the consultation period to coincide with the annual Falkirk Fair, when businesses traditionally close for summer.
MSPs were previously told buses built in China are around £100,000 cheaper than buses built at the Scottish factories facing closure.
