Alexander Dennis Ltd (ADL) is shutting one of its two factories in Falkirk and plans to slash dozens of jobs as it focuses on chassis work in Scotland instead of building full vehicles. One MP told the Record that "boardrooms in Beijing are buzzing" while 115 Scots workers have had their jobs put at risk.
Factory closure and job losses
ADL has specialised in building double decker buses at a site in Camelon since the 1950s, with a second production line added in nearby Larbert in the 1990s. The firm now plans to sell off the older site and instead convert its Larbert factory into a chassis manufacturing site, meaning full buses will no longer be built in Scotland.
ADL was told in June - weeks after the Holyrood election - that such a move would mean it was ineligible for a furlough scheme previously agreed by SNP ministers. Stephen Flynn, the Transport Secretary, last night told MSPs it was "extremely disappointing" no furlough cash was paid, but he insisted it was "entirely consistent with the arrangement we made with the company".
Government support and legal challenge
ADL said the switch to chassis work in Larbert would protect 200 jobs, but at a cost of a further 115 roles. It comes as the SNP Government faces a legal challenge from one of the country's biggest bus operators over a failure to win funding from the third round of the Scottish Zero Emission Bus challenge fund (ScotZEB3).
McGills had sought £4.36 million from ScotZEB3 towards 33 ADL-built battery-electric buses and 13 chargers. ScotZEB3 saw £45m shared between five projects and will bring 334 zero-emission buses and coaches to Scotland's operators – but half of these vehicles will be supplied by Yutong in China.
Political reaction
Euan Stainbank, Labour MP for Falkirk, told the Record: "The SNP's complete loss of control over ScotZEB3 schemes means that boardrooms in Beijing are buzzing, 115 workers have directly had their jobs put at risk, and it looks like the Scottish taxpayer will end up picking up a greater bill for lawyers than supporting work for Falkirk's bus manufacturing workforce."
Stainbank added: "Stephen Flynn must explain why he has taken three months to notify Parliament that the SNP backtracked on their promise to the workforce - and get the operators, workforce and company around the table to discuss how we can back this vital sector."
An ADL spokesman said: "We are deeply disappointed that the company has been left to absorb the full cost of the furlough scheme after expected financial support from Scottish government failed to materialise. Faced with difficult choices, we acted to safeguard highly skilled manufacturing jobs at Larbert and protect the future of bus manufacturing in Scotland by converting our Larbert facility to focus on chassis assembly."
The spokesman added: "Those changes have now been implemented at considerable cost to the company, on top of the full cost of furlough."
The Record previously revealed ADL had last year marketed one of its two factory sites in Falkirk up for sale despite high-level talks ongoing at the time to save jobs. The Camelon factory has been in operation since 1958 and is understood to require substantial investment. The Larbert factory has undergone significant upgrades in recent years.
