08-05-2025
- Business
- The Herald Scotland
Forbes urged to intervene to protect Scots industry after job losses
It is the second jobs blow in the construction supply chain in recent weeks and GMB Scotland say it "must raise red flags at Holyrood".
It comes as the construction sector is grappling with labour shortages - as the Scottish Government seeks to build 110,000 affordable homes by 2032 aiming to address a homelessness crisis, combat child poverty, and support the economy.
Analysis from the Scottish-based construction and property management consultant Rider Levett Bucknall (RLB UK) revealed that a skills gap is a major challenge in Scotland.
It said the nation requires 26,000 additional construction workers over the next five years to meet industry demands and sustain growth.
According to official data, as of June 2024, 35.1% of businesses in the construction sector reported worker shortages, while 39.6% experienced recruitment difficulties.
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The primary reasons cited include a lack of qualified applicants and financial constraints limiting the ability to offer competitive salaries.
Meanwhile, official analysis show there has been a 17.5% slump in the number of affordable homes completed in Scotland just one year. There were 8,180 new affordable homes finished in 2024 which were funded by the Scottish Government - 1,736 fewer than in 2023.
It comes seven years after the Scottish Government launched an action plan to build affordable homes which was meant to curb homelessness, cut the use of temporary accommodation and rapidly rehouse people.
GMB Scotland has written to deputy first minister and economy secretary Kate Forbes warning the proposed closure of the Aggregate Industries site, near Glasgow, has come without warning or justification.
Affordable homes (Image: Stock) It is urging politicians to intervene to encourage the company to review the decision and protect the country's manufacturing base.
The job losses at the plant in Chryston, owned by Holcim UK, come only weeks after 41 redundancies were announced by Tarmac at a Scotland's only cement plant in Dunbar.
Union officials said 41 jobs, around a third of the overall workforce, could be lost and will not only affect communities in East Lothian but undermine Scotland's manufacturing base as they describe the facility as 'critically important to the Scottish economy'.
The plant, which makes some 700,000 tonnes of cement each year, is reportedly in talks with workers over the potential job cuts.
Robert Deavy, GMB Scotland senior organiser in manufacturing, warned Scotland is losing skilled jobs and industrial capability of huge strategic importance.
He said: 'The Aggregates site produces asphalt and concrete and it is difficult to think of two materials more important for a country serious about construction and growth.
Robert Deavy (Image: Andrew Cawley) 'This threatened closure comes weeks after job losses announced at Tarmac and ministers must understand what is going on and take action.
'Job losses at this pace in a sector of such industrial and economic importance cannot be ignored.
'How can Scotland build for the future when we are losing the capability to supply the roads and construction industry?
'Why are skilled jobs like this at risk in Scotland at the same our governments are talking about building our manufacturing capabilities? It makes no sense.'
In September, last year, another construction firm appointed administrators with 66 jobs lost.
Hadden Construction announced it appointed Alvarez & Marsal as administrators with its 66 members of staff being made redundant.
It cited inflation in materials prices, rising labour costs and supply chain interruptions as the main reasons for its closure.
The building contractor worked on projects ranging from residential developments to commercial and public sector buildings, including schools and healthcare facilities.
And in January, two Scottish affordable house builders entered administration resulting in the loss of almost 50 jobs and putting several council developments at risk.
Connect Modular and its sister company Hope South West both appointed administrators, citing rising costs and losses from historic contracts.
The firms, based in Cumnock, Ayrshire, worked on award-winning modular housing schemes for councils, housing associations and community trusts across the UK.
In July, last year Connect Modular completed a £17m project in Kilmarnock to build 101 low-rise, modular affordable homes. The project was delivered to Cunninghame Housing Association with Scottish government funding and garnered two prizes at the Chartered Institute of Housing's Scotland Housing Awards in November.
Mr Deavy said the closure of the Aggregate Industries plant, in North Lanarkshire, came out of the blue just weeks after talks changes to shift patterns to allow improvement works at the site.
He said: 'The closure of the site would be another brutal blow to an area already hammered by the economic damage of deindustrialisation.
'It cannot be allowed to go ahead and our politicians must do everything possible to encourage the company to find a new forward and secure the future of this plant.'
GMB Scotland has asked the deputy first minister for an urgent meeting to discuss the threatened job losses as the consultation process at Aggregate Industries continues.
Business minister Richard Lochhead said: 'I am deeply concerned about the recruitment challenges faced by the construction sector and appreciate its close engagement with the Scottish Government on these issues.
'Construction apprenticeships continue to be one of the highest taken up, with figures showing that construction occupations accounted for 25.3% of Modern Apprenticeship starts in 2023-24.
'But more must be done and this week's Programme for Government commits to measures to boost training, including support for colleges to deliver a pipeline of skills and a new Scottish Government-led approach to skills planning. It also commits to unlocking investment opportunities for more affordable housing.'
Holcim was approached for comment.
