Closure of Alexander Dennis will be ‘catastrophic’ for area already struggling

The closure of bus manufacturer Alexander Dennis would be “catastrophic” for an area already struggling, MSPs have been told.

The firm said earlier this month it could move its production from two sites in Larbert and Camelon, near Falkirk to Scarborough, North Yorkshire in a bid to lower costs.

The plans have yet to be signed off by the company, union representatives told MSPs, but the move would put around 400 jobs at risk in Scotland.

We believe that this is a political failure that now requires a political solution

A few miles away in Grangemouth, just over 400 jobs were lost earlier this year when the oil refinery closed and transitioned into being an import terminal.

Appearing before the Economy and Fair Work Committee at Holyrood, Derek Thomson, the Scotland regional secretary for trade union Unite, said: “It’ll be catastrophic in Falkirk and Larbert to lose that amount of jobs.”

While 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 (Alexander Dennis Limited) involvement on this.”

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.

Deputy First Minister Kate Forbes said: “The absolute focus right now is on supporting Alexander Dennis Ltd, its workforce, as well as the families and communities they support.

“We also recognise the significance of the company within the local economy and across the wider supply chain.

“The Scottish Government has committed to exploring all viable options throughout the consultation period to allow the firm to retain their hard-working employees and manufacturing and production facilities at Falkirk and Larbert.

“We will continue to work in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the UK Government.

“Since 2020, ADL secured orders for more zero emission buses than any other single manufacturer through the Scottish Zero Emission Bus Challenge Fund and its predecessor the Scottish Ultra Low Emission Bus Scheme.

“ADL has received £58 million of Scottish Government subsidy for vehicles under these programmes.”