The manufacturer is consulting on the potential loss of 160 jobs at its Scottish factory in the face of stiff competition from overseas
Alexander Dennis has confirmed that it has started a consultation process regarding 160 roles at potential risk of redundancy in Scotland. The manufacturer says that Government zero-emission bus funding has disproportionately benefited competitors from lower-cost and lower-security economies, and that it has been ‘forced’ to make the decision despite record levels of funding for zero-emission buses being made available from both the UK Government and the Scottish Government.
Alexander Dennis, which employs around 1,950 people, including apprentices, in the UK and supports an estimated 6,350 further people in its domestic supply chain, says it has repeatedly voiced concerns about the uneven playing field that exists for UK bus manufacturers.
The company believes its investment in people, products and facilities, as well as those made by other UK manufacturers to strengthen the domestic manufacturing base, are currently not being honoured by Government policies that would reward the higher wages paid and better employment rights offered in the UK. Companies have been put at a disadvantage, it says, by policies that actively underpin and encourage an uneven playing field working against British bus manufacturers, stating that although import duties are often used to incentivise investment in domestic products and jobs, the 10% tariff applied to imported electric buses is lower than the 16% rate for equivalent diesel vehicles.
The manufacturer complains that despite political ambitions to support local businesses, supply chains and communities, authorities are prevented from considering such wider benefits due to the subsidy control legal framework, underpinned by the Subsidy Control Act 2022 which sets out requirements and prohibitions which include an inability to grant subsidy that gives any additional consideration or weighting to domestic manufacturers over any non-domestic provider.
In Scotland, Alexander Dennis points out, UK-based vehicle manufacturers are at an additional disadvantage when in direct or indirect receipt of Scottish Government funding as they must adhere to advanced Fair Work First standards of employee remuneration, welfare and safety, while no such requirement is made of suppliers whose production takes place in other countries. The manufacturer adds that bus operators are also not incentivised or rewarded for choosing companies that meet Fair Work First standards when funding is awarded, which it says undermines the value of the policy.
As a result, Alexander Dennis, which has recently switched from a partnership with Chinese chassis provider BYD to producing its electric buses fully in-house says it ‘must consider options to match production capacity with its order book, particularly in its Scottish manufacturing facilities.’ A statutory consultation has been launched with 160 roles in Scotland at potential risk of redundancy.
President & Managing Director for Alexander Dennis Paul Davies commented: “We are proud to be headquartered in the UK with much of our workforce based here, and our combined companies have over 300 years of manufacturing history, providing highly skilled engineering and manufacturing jobs and apprenticeships that support our communities. 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.”
