Joy as BiFab saved
Hundreds of jobs have been saved at engineering firm BiFab after the Scottish Government stepped in with a loan.
The package will allow the crisis-hit firm to complete a windfarm contract.
First Minister Nicola Sturgeon said : “This agreement lifts the threat of administration.”
A deal was struck with the Scottish Government yesterday to lift the threat of administration from crisis-hit engineering firm BiFab.
The agreement means 1400 jobs have been saved at their sites in Burntisland and Methil in Fife and the Isle of Lewis.
The company, who make structures for the oil and gas and offshore wind industries, announced this month that administrators were being called in due to cash-flow problems.
Union bosses claimed the shortfall was caused by Dutch contractor Seaway Heavy Lifting not paying for completed work.
BiFab jobs were at risk if the firm went into administration, with their sites in Fife and on Lewis facing closure.
Yesterday’s agreement will see the firm receive payments to address the cash-flow problem and enable the administration threat to be lifted.
The Scottish Government said they would be prepared to offer a commercial loan to the company.
The deal will see work continue on the current contract for the Beatrice Offshore Windfarm.
The financial package to complete the job has been provided by Seaway, SSE and the partners to the Beatrice Offshore Windfarm project, JCE Offshore.
Ministers said work remains to be done to secure BiFab’s long-term future.
Hundreds of workers at the firm were backed by their families at a demo outside the Scottish Parliament on Thursday.
Yesterday’s announcement follows intensive negotiations on Thursday and Friday involving First Minister Nicola Sturgeon, cabinet colleagues, unions and company bosses.
Sturgeon said last night: “I am pleased that, after an extensive series of talks over the last week and two days of intense negotiations, we have been able to broker a commercial agreement that lifts the threat of administration from BiFab and allows work on the current contract to continue.
“I know this has been an anxious time for people employed at BiFab, as well as their families and the wider communities of Burntisland, Methil and Arnish, and the trade unions have ensured that the importance of this company was made clear to al l companies involved.
“We recognise there’s a lot of work to do to secure the long-term position.”
Union leaders Gary Smith, of the GMB, and Unite’s Pat Raf ferty said in a joint statement: “These yards would be closed today if it wasn’t for the dignity and determination of workers and their families in Fife and Lewis to save their jobs and industry. The Scottish Government’s efforts have been pivotal in bringing BiFab back from the brink.”
During a visit to workers in Methil last night, Scottish Labour leader Richard Leonard said: “The combined pressure of BiFab workers, trade unions and the public have forced a deal from the Government. We must ensure it protects all 1400 jobs under threat now and in the future.”