Alexander Dennis bus company blames 'uneven playing field' after 160 jobs put at risk

A Scots bus manufacturer said an “uneven playing field” is to blame as the consultation process in which 160 roles are at risk begins.

Global independent bus manufacturers Alexander Dennis, a subsidiary of NFI Group Inc., confirmed that the process had begun on Thursday.

The bus manufacturer, which has eight sites across the UK including Falkirk and Larbert, announced that 160 Scottish jobs could be axed last month.

Alexander Dennis cited “various government policies” creating an “uneven playing field” across the industry as the reason behind the redundancies.

Paul Davies, president and managing director for Alexander Dennis, said that government funding has “effectively incentivised” competitors to buy from lower-security economies.

The manufacturer said it had been forced to cut jobs despite record levels of funding for zero emission buses being made available from both the UK Government and the Scottish Government.

A statement from the company said that manufacturers receiving funding from the Scottish Government are at a “disadvantage” due to adhering to the Fair Work First standards which is not a requirement of suppliers whose productions take place in other countries.

The statement continued: “Neither are bus operators incentivised or rewarded for choosing companies that meet Fair Work First standards when funding is awarded.

“This not only puts domestic manufacturers at further competitive disadvantage, but also undermines the value of this flagship policy as government-funded work is shipped offshore.”

The company claimed it “has repeatedly voiced concerns” about the uneven playing field that exists for UK bus manufacturers.

Mr Davies said: “We are deeply disappointed that the ongoing effect of various government policies is now threatening some of these jobs.

“Competition in itself is healthy, but when taxpayer money is spent with little domestic industrial, economic or employment benefit and bus companies effectively are incentivised to buy from lower-security economies, it creates an incomprehensible dynamic and an uneven playing field.

“While our statutory consultation has commenced, we will continue to do everything we can to save and protect as many jobs as possible. We will continue our dialogue with governments to identify potential solutions to level the playing field, strengthen our industry and drive investments in local jobs and domestic supply.”

Employment and Investment Minister Tom Arthur responded saying the Government had engaged “extensively” with Alexander Dennis to understand the issues and mitigate the need for redundancies.

He said: “This has included discussions with the First Minister, and the support of Scottish Enterprise and Transport Scotland.”

“The affected staff are our immediate priority and, in the event of job losses, the Scottish Government will provide support through our Partnership Action for Continuing Employment initiative.

“ADL has secured more orders than any other single manufacturer through the Scottish Zero Emission Bus Challenge Fund and its predecessor programme, with more than £20 million in grant funding being made available to the company since 2020 through Scottish Enterprise.

“The cost of living crisis is exactly why Fair Work – including fair pay – is more important than ever, and why fair work principles are applied to public sector grants, other funding and contracts where relevant.

“Scottish Ministers have a duty to ensure compliance with regulations held in the UK Subsidy Control Act 2022 to promote fair competition, and prevent any negative effects on trade and investment within the UK, or with other countries. There is also a legal obligation to comply with World Trade Organisation rules which prohibits a subsidy that specifically requires the use of a domestic good over an imported good.”

Unite Industrial Officer Pat Egan said: “The announcement of 160 potential job losses at Alexander Dennis in Falkirk is deeply alarming. Be in no doubt that the impact on the workforce and the local community will be huge.

“Alexander Dennis should be one of Scotland’s green manufacturing jewels and we should be creating more jobs not cutting them to deliver the green buses of the future. Instead, we face another blow to our manufacturing base on the back of the devastating news coming from Grangemouth.

“We are demanding meetings with the company and the Scottish Government to explore all avenues which can protect jobs because if Scotland wants to promote bus travel and achieve lower carbon emissions then we need a manufacturing base capable of delivering these objectives.”