Alexander Dennis extends redundancy deadline to explore options to save jobs

Alexander Dennis has announced it will extend the consultation period on the future of its Scottish sites, giving the company more time to consider all options to retain staff and facilities.

The Scottish bus manufacturer has put about 400 jobs at its Falkirk and Larbert factories at risk as it looks to move all operations to Scarborough, North Yorkshire.

A consultation process was due to end at the start of August, but has now been extended by two weeks until at least August 15.

Finance secretary Shona Robison welcomed the decision, which would provide more time to explore the option to save jobs.

Alexander Dennis announced in June that the site in Falkirk would be shut down and that production lines at Larbert would be suspended upon the completion of current contracts.

Appearing before Holyrood’s Economy and Fair Work Committee last week, the company said the closure of the Scotland sites was “not a done deal”.

Managing director Paul Davies said orders for up to 100 buses and changes to regulation are needed before the end of the year.

He said the firm would need about 70-100 buses by the end of the year and 300-400 for next year.

Even with the orders, it was added that there will be a lag before work can begin on manufacturing to allow for design and the acquisition of materials.

Mr Davies said the firm would need to see consistent orders made to help stabilise the future of the business in Scotland.

In a letter to the committee, Robison said: “In a positive development, as you may be aware, Alexander Dennis Limited have written to inform the Scottish Government that they have extended the consultation period to provide more time to explore all viable options to retain their hardworking staff and facilities at Falkirk and Larbert.

“This welcome decision is a good sign of collaborative working.”

Robison said officials have also met with the company to discuss a potential company furlough scheme.

If progressed, it would be the business’s offer to its employees to prevent compulsory redundancies among the manufacturing workforce, and would be administered by the business.

“We are in discussions with Alexander Dennis on the potential for the Government to support the company’s scheme for a defined period,” Robison said.

In relation to orders, Robison said the key issue is to “establish greater confidence in demand for the double-deck vehicles, which Alexander Dennis manufactures in Larbert.

“Given the relative size of the Scottish bus market, the English market for double-deck vehicles is clearly critical,” she told the Economy and Fair Work Committee.

There are around 3,500 public sector vehicle buses operating in Scotland, according to Robison, with a split between double-deck and single-deck.

Meanwhile, there are around 30,000 such vehicles in the English market.

Robison also addressed criticism from SNP opponents over the Scottish Government’s support and procurement from Alexander Dennis.

Scottish Labour leader Anas Sarwar previously claimed that Labour Greater Manchester mayor Andy Burnham had ordered “almost four times as many buses from Alexander Dennis than the SNP Government”.

In her letter, Robison said the bus market in England operates differently from that in Scotland.

“In England, mayors are buying buses for specific operators in their areas operating through a franchise. In Scotland, the Scottish Government has provided funding for national grant programmes that have supported the needs of bus operators across the whole country,” she said.

“Since 2020, through these competitive funding programmes, Alexander Dennis has secured orders for more than 360 vehicles, more vehicles than any other manufacturer.

“The Scottish Government is urgently examining options to provide greater confidence regarding short-term demand for bus manufacturing in Scotland. This exploration includes consideration of what can lawfully be done to provide support to the bus manufacturing industry in line with procurement and subsidy control rules.”

As consultations over the potential job losses and facilities closures continue, Robison said officials from both Governments continue to meet regularly about the situation through a joint Scottish Government / UK Government working group, which met for the fourth time on June 30.

Meetings are also taking place between Robison, Alexander Dennis, and trade unions, Unite and GMB.