Alexander Dennis risks 400 jobs by moving bus manufacturing to England
- Bus maker Alexander Dennis is considering moving all UK manufacturing to a single site in Scarborough, North Yorkshire.
- The potential closure of facilities in Falkirk and Larbert would affect 400 jobs, approximately 22% of the workforce.
- This consolidation has raised concerns among unions and local government about the economic impact on affected communities.
In the United Kingdom, bus maker Alexander Dennis has revealed plans that could put up to 400 jobs in jeopardy as it aims to centralize its manufacturing operations. The company, which has its headquarters in Scotland, is considering relocating all UK production to a single facility in Scarborough, North Yorkshire. This decision could result in the closure of manufacturing lines in Falkirk and Larbert, which are significant sites for the firm. The GMB Scotland union has criticized this move as a detrimental impact on local communities already struggling from previous economic downturns, particularly following the closure of the Grangemouth oil refinery. Scottish Deputy First Minister Kate Forbes has expressed concern regarding the effect of these changes on the workforce, their families, and the wider community. The Scottish Government has been actively engaging with Alexander Dennis and its parent company, NFI, to explore all possible avenues to mitigate redundancy needs. They are committed to seeking solutions to help retain jobs at these critical manufacturing sites, offering support through the Partnership Action for Continuing Employment program to assist any employees facing layoffs. Within the context of these developments, Alexander Dennis has justified its decision by citing the need for improved efficiencies and reduced operational costs. In a statement, the company acknowledged that they believe in their workforce and production capabilities, but have emphasized the necessity of adapting to stay competitive in the market. The company claims that current UK policies do not favor domestic manufacturing and that they have been advocating for legislative changes that would stimulate local job creation and support local supply chains. Political leaders such as Scottish Secretary Ian Murray have pointed out that part of the challenges facing Alexander Dennis may stem from insufficient orders from the Scottish Government when compared to orders made by other regions, which has exacerbated the financial strain on the company. In light of these issues, the UK Government has encouraged consideration of a furlough scheme to provide immediate relief for employees while longer-term solutions are sought. The announcement raises significant questions about the future of bus manufacturing in Scotland and reflects broader issues regarding the support of local industries in the current economic climate.