Prime Highlights:
- The Scottish Government has stepped in with a £4m furlough package to protect up to 400 jobs at Alexander Dennis in Scotland.
- Alexander Dennis is confident of securing future bus orders, ensuring continued manufacturing operations at its Scottish sites.
Key Facts:
- The furlough scheme will last 26 weeks, with the Scottish Government covering 80% of wages and Alexander Dennis paying the remainder.
- To access the funding, the company must provide evidence of future bus orders, acting as a bridge to a sustainable business in Scotland.
Key Background:
Alexander Dennis Limited (ADL), one of the UK’s leading bus manufacturers, has confirmed that plans to cut up to 400 jobs in Scotland have been temporarily halted, following the announcement of a £4 million government-backed furlough scheme. The company, which operates eight sites across the UK, including in Falkirk and Larbert, had previously proposed moving operations to a single site in Yorkshire due to financial concerns.
The Scottish Government’s intervention aims to retain the skilled manufacturing workforce at the company’s Scottish sites while ensuring continuity of bus production. First Minister John Swinney, during a visit to the Larbert site, confirmed that the furlough scheme has been agreed upon, providing 26 weeks of financial support. The government will then pay 80 percent of the salary of employees under the scheme, with Alexander Dennis paying the other 20 percent.
The financial support is contingent upon the company demonstrating future bus orders, ensuring that manufacturing operations in Scotland remain viable. Alexander Dennis has expressed confidence that the increasing demand for its single and double-decker buses in recent weeks will result in sufficient orders to sustain operations.
Alexander Dennis president and managing director Paul Davies emphasized the significance of the support, describing it as “a turning point” for the company. He added that the collaboration between the Scottish Government and the company demonstrates a shared belief in the value and future of domestic manufacturing. The company has indicated that to remain viable, it will need to secure between 70 and 100 bus orders by the end of the year, and between 300 and 400 orders next year.
The Scottish Government’s funding will help Alexander Dennis keep its factories running in Scotland. During the furlough, workers will receive training from Scottish Enterprise to stay skilled for their jobs.
First Minister Swinney said it is important to protect manufacturing jobs in Scotland. The agreement shows that both the government and the company are working to save jobs and support the local economy.
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