160 jobs facing axe as Scottish bus manufacturer Alexander Dennis starts redundancy process
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A total of 160 Scottish jobs could be axed at bus manufacturer Alexander Dennis as the company blamed an “uneven playing field” for the decision.
The Falkirk-based firm on Thursday confirmed it had launched a redundancy consultation process. The company claimed government zero-emission bus funding had disproportionately benefited competitors from lower-cost and lower-security economies.
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Hide AdA total of 160 roles are at potential risk of redundancy in Scotland, the firm said. The company employs nearly 1,950 people across the UK, with an estimated 6,350 extra people in its domestic supply chain.
Alexander Dennis has called for higher import duties on electric buses to help it remain competitive.
In a statement, the company said: “In Scotland, UK-based vehicle manufacturers are at an additional disadvantage when in direct or indirect receipt of Scottish Government funding as they must adhere to advanced Fair Work First standards of employee remuneration, welfare and safety, while no such requirement is made of suppliers whose production takes place in other countries.
“Neither are bus operators incentivised or rewarded for choosing companies that meet Fair Work First standards when funding is awarded. This not only puts domestic manufacturers at further competitive disadvantage, but also undermines the value of this flagship policy as government-funded work is shipped offshore.”
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Hide AdPaul Davies, president and managing director for Alexander Dennis, said: “We are proud to be headquartered in the UK with much of our workforce based here, and our combined companies have over 300 years of manufacturing history, providing highly skilled engineering and manufacturing jobs and apprenticeships that support our communities.
“We are deeply disappointed that the ongoing effect of various government policies is now threatening some of these jobs.
“Competition in itself is healthy, but when taxpayer money is spent with little domestic industrial, economic or employment benefit and bus companies effectively are incentivised to buy from lower-security economies, it creates an incomprehensible dynamic and an uneven playing field.
“While our statutory consultation has commenced, we will continue to do everything we can to save and protect as many jobs as possible.”
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Hide AdUnite industrial officer Pat Egan said: “The announcement of 160 potential job losses at Alexander Dennis in Falkirk is deeply alarming. Be in no doubt that the impact on the workforce and the local community will be huge.
“Alexander Dennis should be one of Scotland’s green manufacturing jewels and we should be creating more jobs, not cutting them, to deliver the green buses of the future. Instead, we face another blow to our manufacturing base on the back of the devastating news coming from Grangemouth.
“We are demanding meetings with the company and the Scottish Government to explore all avenues which can protect jobs because if Scotland wants to promote bus travel and achieve lower carbon emissions, then we need a manufacturing base capable of delivering these objectives.”
Scottish Conservative shadow transport minister Graham Simpson described the announcement as “another hammer blow for the area”, coming on the day the closure of the Grangemouth refinery was confirmed.
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Hide Ad“The potential loss of 160 jobs off the back of more than 400 being lost at the refinery will be devastating on the local economy,” Mr Simpson said. “Scots rightly have concerns about China’s appalling human rights abuses and the SNP should ensure taxpayers’ money goes towards safeguarding jobs in Scotland wherever possible.”
Alexander Dennis has been behind the manufacture of the autonomous buses being used to cross the Forth Road Bridge. The company’s Larbert site has been focusing on the production of new Enviro400EV zero-emission buses since August last year.
Employment and Investment Minister Tom Arthur said: “The Scottish Government has engaged extensively with Alexander Dennis to understand the issues and ensure all available options are being explored to mitigate the need for redundancies. This has included discussions with the First Minister, and the support of Scottish Enterprise and Transport Scotland.
“The affected staff are our immediate priority and, in the event of job losses, the Scottish Government will provide support through our Partnership Action for Continuing Employment initiative.
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Hide Ad“ADL has secured more orders than any other single manufacturer through the Scottish Zero Emission Bus Challenge Fund and its predecessor programme, with more than £20 million in grant funding being made available to the company since 2020 through Scottish Enterprise.
“The cost-of-living crisis is exactly why Fair Work, including fair pay, is more important than ever, and why fair work principles are applied to public sector grants, other funding and contracts where relevant.
“Scottish ministers have a duty to ensure compliance with regulations held in the UK Subsidy Control Act 2022 to promote fair competition, and prevent any negative effects on trade and investment within the UK, or with other countries. There is also a legal obligation to comply with World Trade Organisation rules, which prohibits a subsidy that specifically requires the use of a domestic good over an imported good.”
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