Bus maker to keep Scottish sites open after £4m furlough pledge.
PA MediaAlexander Dennis, a bus manufacturer, said it will keep its Scottish sites open after the Scottish government paid £4 million for a furlough scheme.
The company had announced plans to close its plants in Falkirk and Larbert, resulting in the loss of 400 jobs, and relocate production to Yorkshire.
First Minister John Swinney acknowledged the company’s backing, which will require “evidence of sufficient orders to sustain its operations in Scotland”.
The furlough arrangement will last 26 weeks, allowing Alexander Dennis to resume industrial operations.
The Scottish government will fund 80% of the program, with Alexander Dennis covering the rest.
The furlough initiative, the first of its type to gain Scottish government assistance, will commence when the firm signs a new order and will assist employees between the signing of a contract and the start of work.
Alexander DennisDuring a visit to the bus company’s Larbert facility, the first minister stated, “The Scottish government wants to retain the manufacturing workforce of Alexander Dennis.”
“My officials have discussed specific details with management and obtained an agreement on the basics of a company-run furlough program. “This is intended to serve as a bridge to a more sustainable future for the company in Scotland.”
“During this period, training will also be offered by Scottish Enterprise.” Alexander Dennis reported increased demand for its single and double-deck buses in recent weeks. It stated that it was “confident in the placement of further orders to support Scottish manufacturing,” but details remained commercially confidential.
According to the company’s managing director, Paul Davies, the news represented “a turning point” that would save “hundreds of jobs”.
He commented: “Together with our team members’ acceptance of new terms and conditions through the trade union ballot, and the confidence we have in securing new orders, we will be able to keep our manufacturing sites in Larbert and Falkirk open and operational.”
In June, the business stated that it still needed orders for at least 300 buses per year to ensure long-term production in Falkirk. Alexander Dennis had originally planned to concentrate its operations at a single facility in Scarborough.
The firm blamed the decision on rising competition from Chinese electric bus makers, claiming that Chinese firms now account for approximately 35% of the UK market.
Alexander Dennis will administer the vacation initiative, which will get financial backing from the Scottish government.
The corporation stated that 11 positions unrelated to Scottish production remained at risk of redundancy. A referendum among Unite union members last week yielded an 85% support for the new vacation plan.
The union stated that the next “immediate priority” was to win new bus orders for the company so that the sites could return to full capacity.
Unite general secretary Sharon Graham stated that the union had “worked tirelessly” with its members, Alexander Dennis, and the Scottish government to establish a rescue plan.
She went on: “The announcement by the first minister that the Scottish government will support a company run furlough scheme backed up with public funds is a very positive development, and one we fully support.” Scottish Secretary Douglas Alexander applauded the company’s decision.
He stated: “This will provide respite to the brilliant staff. “The UK government has been leading intensive work with partners, including the Scottish government, and actively encouraged the furlough scheme that has been announced today.”
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