Scotland's state-owned shipyard to cut a quarter of its workforce

Sincity Press Staff 4 hours ago 6 min read 3
Sincity Press Brief

Work on the second of two long-delayed CalMac ferries is drawing to a close at the state-owned yard in Port Glasgow.

Workers marque   last  preparations up  of the motorboat  of the MV Glen Rosa successful  April 2024. Six workers tin  beryllium  seen successful  the foreground with their backmost  to the camera. The white, achromatic  and reddish  ferry, with Caledonian MacBrayne written connected  the side, is successful  the distance.Image source, Getty Images

ByCalum Watson

BBC Scotland

Scotland's state-owned shipyard is to chopped astir a 4th of its full workforce portion it waits for confirmation of promised caller orders.

Workers astatine Ferguson Marine person been invited to use for voluntary redundancy arsenic operation draws to a adjacent connected the 2nd of 2 long-delayed CalMac ferries.

The Port Glasgow steadfast presently employs 283 staff, including 34 apprentices - but says it expects to shed 70 posts done a voluntary redundancy process.

The Scottish authorities has promised to straight grant the gait caller orders for 4 smaller ships, but ministers accidental they are inactive conducting "due diligence" connected the plan.

Ferguson Marine is the past commercialized shipyard connected the Clyde.

It was nationalised successful 2019 aft a agelong quality betwixt its erstwhile proprietor and government-owned ferries bureau Caledonian Marititime Assets Ltd (CMAL) implicit claims for other costs for 2 dual-fuel CalMac ferries.

The gates of a shipyard with the words Ferguson Marine chopped  retired  of them and a ample  yellowish  crane successful  the background

Image caption,

The Ferguson shipyard faces a spread successful orders contempt promises of caller enactment from the Scottish government

The first, MV Glen Sannox, was yet delivered successful November 2024, portion MV Glen Rosa is owed for completion by the extremity of this year.

The shipyard precocious completed sub-contracting enactment for BAE Systems for caller Type 26 frigates and presently has nary confirmed aboriginal orders.

Ferguson Marine CEO Graeme Thomson said the yard's contiguous absorption was the handover of Glen Rosa earlier the extremity of this year.

"However, arsenic the vas nears completion, we look an inevitable spread successful workload portion we enactment with the Scottish authorities to marque the applicable preparations to alteration america to proceed with declaration negotiations.

"Shipbuilding capableness relies connected continuity and portion changes of this quality are difficult, taking proactive enactment present ensures we support the semipermanent viability of the gait and stay lean, modern, and acceptable to chopped alloy connected the caller fleet arsenic rapidly arsenic possible."

A radical  of radical   successful  yellowish  precocious   visibility vests are shown astir   an concern   site, led by a antheral   successful  a reddish  boilersuitImage source, Ferguson Marine

Image caption,

The latest intake of 10 apprentices and their parents were precocious fixed a circuit of the gait earlier the trainees statesman their archetypal twelvemonth successful college

In March, earlier the Holyrood election, the Scottish authorities announced plans to straight grant the shipyard contracts for 4 aboriginal vessels.

It said the vessels - 2 tiny CalMac ferries, a fisheries probe vessel and a marine extortion vas - would supply a "bridge to the future" for the yard.

The past Economy Secretary Kate Forbes said the authorities had "done a batch of the upfront enactment successful presumption of scoping out, securing immoderate of the ineligible proposal astir what is possible".

But she added that engagement with the Competition and Markets Authority would beryllium required.

Since past nary of the contracts person been confirmed, with ministers saying "due diligence" is inactive being carried out.

A ample  achromatic  and achromatic  vessel  with reddish  funnels, moored astatine  a quaysideImage source, Christopher Brindle

Image caption,

MV Glen Rosa has present been moved downriver to Inchgreen for last fitting retired and commissioning, leaving the main Port Glasgow gait without a vessel nether operation for the archetypal clip successful 12 years

Economy, Tourism and Transport Secretary Stephen Flynn said the redundancy strategy was portion of efforts to modernise the shipyard and enactment it connected a much competitory footing.

"The enactment that the enactment squad astatine Ferguson Marine is taking contiguous is indispensable to assistance unafraid a viable aboriginal for the yard, and that of commercialized shipbuilding connected the Clyde," helium said.

Flynn said helium had been assured that the reduced workforce would not impact the gathering of the MV Glen Rosa.

And helium added: "Our volition to straight grant 4 vessels continues to acquisition afloat owed diligence further to adjacent steps which volition beryllium announced to parliament successful owed course."

Even if a caller declaration was awarded imminently, astatine slightest a twelvemonth of plan enactment would beryllium required earlier the gait would beryllium successful a presumption to commencement cutting steel.

While the promised caller orders person yet to beryllium confirmed, they person allowed the steadfast to update its concern plan, perchance unlocking the £14.2m of modernisation wealth archetypal announced by ministers much than 2 years ago.

Ground probe enactment is taking spot with a presumption to installing caller instrumentality and bundle which is hoped to rise productivity.

The shipyard's apprentice programme is besides unaffected by the redundancies successful the abbreviated term, with 34 young workers already successful grooming and a caller intake of 10 trainees astir to commencement their archetypal twelvemonth successful college.

Why is the shipyard struggling for orders?

Ferguson's has successfully built much than 360 ships since it was founded by 4 brothers successful 1903, but its estimation has been harmed by the contention implicit the long-delayed and over-budget ferries MV Glen Sannox and MV Glen Rosa.

Construction of the archetypal liquefied earthy state (LNG) vessels of their benignant ever built successful the UK was blighted by plan challenges and disputes implicit claims for other costs.

While determination is wide statement the workforce were not to blame, the contention whitethorn person near imaginable customers tense astir placing caller orders.

The shipyard besides faces wider challenges, successful communal with each UK shipbuilders, of having to vie connected outgo with overseas firms, peculiarly successful eastbound Europe and the Far East.

The Society of Maritime Industries says overseas yards are typically capable to undercut UK-based shipbuilders by 10-20% owed to a premix of cheaper labour and amended authorities support.

A achromatic  and achromatic  representation  of a tug, Flying Swift, retired  connected  the h2o  with hills successful  the backgroundImage source, Ferguson archive

Image caption,

The Ferguson shipyard has built much than 360 ships since its archetypal vessel, a tug called Flying Swift, took to the h2o successful 1903

Two years agone Ferguson's missed retired connected an bid for 7 tiny CalMac ships which was wide regarded arsenic an perfect declaration to assistance rebuild the firm's reputation.

While its bid was praised for its quality, CMAL awarded the woody to a Polish steadfast due to the fact that it could physique the ships much cheaply.

Ferguson's absorption has repeatedly called for "social value" to beryllium factored into specified evaluations, which would recognise the wider economical benefits of gathering ships successful Scotland alternatively than focusing connected the header price.

But CMAL claims it is restricted successful its quality to people bids for societal value due to the fact that Scotland's pre-Brexit procurement rules mean it indispensable dainty each bidders equally.

Last summertime Ferguson's brag Graeme Thomson called for the nonstop grant of different CalMac ship, a replacement for MV Lord of the Isles.

He described it arsenic a "target contract" and warned it would beryllium "very difficult" to prolong workforce numbers if the gait did not unafraid the work.

But his entreaty was rejected by ministers, and the declaration went retired to tender earlier this year.

Ferguson's was incapable to bid for the enactment due to the fact that CMAL acceptable pre-qualification criteria which, according to Ferguson's management, no UK-based commercialized shipbuilder was susceptible of fulfilling

A shortlist of bidders has present been drawn up, but CMAL has declined to uncover which firms are connected it oregon wherever they are based, connected grounds that this would harm competition. The winning bidder volition beryllium announced aboriginal adjacent year.