Bifab must secure work or begin redundancies

Company has nothing on its order book beyond the Beatrice Offshore Wind Farm

Fife manufacturing firm BiFab faces a frantic scramble to secure work as redundancy looms for 260 permanent workers.

If the firm fails to secure further work, the first redundancies would start in May.

The company has confirmed there is nothing in the order book after the completion of a contract for the Beatrice Offshore Wind Farm in the Moray Firth.

But it did not rule out securing further contracts which would safeguard workers. BiFab business development manager Iain Scrimger said the timing of securing work for the Methil and Burntisland yards was “critical”.

He said: “A number of target projects remain under tender, both within the renewables and oil and gas sectors, where further discussions continue in hope to secure further work across each of the BiFab sites and maintain continuity of employment in the business beyond the Beatrice Offshore Wind Farm project.”

Troubled Fife manufacturing firm BiFab has not ruled out securing further work to avoid mass redundancies.

However, the company, which is nearing the end of a contract to make subsea structures for the Beatrice Wind Farm project in the Moray Firth, said the timing was now “critical”.

On Monday, trade union Unite announced 260 jobs were at risk as BiFab’s yards in Burntisland, Methil and Arnish faced closure.

It followed a turbulent few months for the firm, which was bailed out by the Scottish Government in November after narrowly avoiding administration.

Last night Unite’s regional officer Bob McGregor called on Holyrood to step in again.

“The Scottish Government’s intervention last year to create a lifeline for these yards was absolutely pivotal,” he said.

“We need the same scale of intervention now led by the Government to save these jobs.”

BiFab’s business development manager, Iain Scrimger, confirmed the order book was currently empty and said permanent staff had been notified of potential redundancies.

However, he insisted this was a statutory process and there was a “natural down-manning” as work on the Beatrice Wind Farm contract comes to an end.

“BiFab senior management continue to work with Scottish Government, Scottish Enterprise and trade union representatives to do everything possible to avoid redundancies within the business,” said Mr Scrimger.

“However, as we approach the end of the current project, and no further work is currently secured beyond, BiFab are going through a natural down-manning process and as such, through our statutory obligation we issue HR1 forms to notify the Government of potential redundancies to permanent staff, where numbers proposed could exceed 20 employees.

“Issuing of the HR1 is part of the collective consultation process to inform staff about potential planned redundancies and not a decision that redundancies will take place,” he stressed.

“A number of target projects remain under tender, both within the renewables and oil and gas sectors.”

“It is not underestimated that the timing of securing those projects is now critical.”

Most workers leaving the Methil yard yesterday were reluctant to speak about the crisis.

However contractor John Galloway, 63, urged First Minister Nicola Sturgeon to intervene a second time to save jobs.

He said: “Nicola, please help the guys. Not for me, but for the young guys.

“This area needs this yard and it must stay open.”

Business, Innovation and Energy Minister Paul Wheelhouse said the Scottish Government was committed to backing Bifab.

“The Scottish Government has offered support to BiFab to allow work to continue on the contracts for the Beatrice Offshore Wind Farm development through a loan facility, and has been fully focused and working intensively to secure a long-term future for the company,” he said.

“We recognise this will be hugely concerning for the workers affected, their families and wider communities and we stand ready to provide support through our Partnership Action for Continuing Employment (PACE) initiative.”

He added: “Ministers recognise that more work remains to be done to secure the long-term future of the company and are fully committed to offering support where possible to attract long-term investment in this vital sector of the Scottish supply chain and economy.”

Kirkcaldy and Cowdenbeath MP Lesley Laird said the latest crisis to hit the firm was “devastating news for BiFab workers and their families.”

She said: “Negotiations with the Scottish Government and potential investors are ongoing and a joint trade union meeting is due to take place at Holyrood next week.

“BiFab is very much on the radar of both the Scottish and UK Governments and I’m optimistic that, if we all work together and stay focused, we will hopefully secure a positive outcome.”

Scottish Green MSPs John Finnie and Mark Ruskell have written to the Government’s economic development agencies urging them to step up efforts.

Mr Ruskell, the Greens’ energy spokesman, said: “Scottish Enterprise and Highlands and Islands Enterprise must step up their engagement to ensure maximum support for the BiFab workforce both in the short term and long term.

“It’s not in the renewable industry’s interests for BiFab to go down.”

Nicola, please help the guys. This area needs this yard and it must stay open.

CONTRACTOR JOHN GALLOWAY

Picture: George McLuskie. BiFab workers leave the Methil yard after their shift yesterday.