The Scottish government is funding a furlough scheme at the struggling bus manufacturer Alexander Dennis in a bid to retain manufacturing jobs in Scotland.
On a visit to the bus company’s site in Falkirk, First Minister John Swinney confirmed around £4 million towards a furlough scheme until work can recommence.
The Scottish government said it has been working intensively with Alexander Dennis, trade unions, the wider public transport sector and the UK government to secure the company’s future in Scotland. Previously, the bus maker looked into consolidating its UK manufacturing operations to Scarborough, with the loss of around 400 jobs.
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Alexander Dennis believes it will obtain enough orders to keep manufacturing operations going in Scotland. In a trade union ballot last week, staff voted 85% in favour of updated terms and conditions for the Scottish workforce.
Swinney said: “My officials have discussed detailed terms with management and reached agreement on the principles of a company-run furlough scheme.
“To access the Scottish government funding, the company will need to provide evidence of orders that will enable its manufacturing to continue in Scotland. Although the details are commercially sensitive, I am aware Alexander Dennis is working hard to do that.”
Alexander Dennis president and managing director Paul Davies said: “We are deeply grateful for the Scottish government’s commitment to preserving jobs, skills, and industrial capability in the region.
“This announcement marks a turning point. The Scottish government’s support allows us to propose a new outcome to our statutory consultation. This has been made possible by collaboration, determination, and a shared belief in the value and future of domestic manufacturing.”
Sharon Graham, general secretary of Unite, which represents the vast majority of the workers, said: “Unite has worked tirelessly for months with our members, Alexander Dennis and the Scottish government to develop a rescue package. 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.”
“The immediate priority is now to secure new orders for Alexander Dennis, which will protect hundreds of highly skilled jobs for years to come.”
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