Shock on Clydeside as last commercial shipyard goes under
SCOTLAND’S last remaining commercial shipyard went into administration yesterday with the loss of 77 jobs.
Workers at Ferguson Shipbuilders in Port Glasgow were given the devastating news they were being axed straight away when they arrived for work.
The race is now on to find a buyer for the Renfrewshire yard, which dates back to 1902, and preserve centuries of proud tradition on the Clyde.
Family-owned Ferguson employed around 80 people but only a skeleton staff of seven have retained their jobs.
Union leaders are calling on First Minister Alex Salmond to step in and save the yard by ensuring government contracts are placed there, rather than overseas.
Ferguson was forced into administration by ‘significant cash flow pressure’ and an empty order book. In recent years, it com-
‘Significant cash flow pressure’
pleted work to deliver the world’s first hybrid diesel ferries for CalMac but has since struggled to win new orders.
Administrator KPMG said the firm had a ‘ l ack of f i nancial strength’ that had ‘hindered its ability to secure new vessel contracts from its core customer base’.
Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland, said: ‘The group’s infrastructure and unique offering has earned it global success in recent years, principally from the building of two “world first” diesel hybrid ferries.
‘However, a lack of significant orders and mounting cash flow pressure has led to the group’s inability to continue trading.
‘We would like to thank staff for their co-operation during this difficult period. We will be working with employees and the relevant government agencies to ensure that the full range of support is available to all those affected.’
The Scottish Government has set up a task force to help staff.
But Jim Moohan, GMB Scotland senior organiser and chairman of the Confederation of Shipbuilding and Engineering Unions, wants Mr Salmond to step in.
Mr Moohan said: ‘This is the last remaining commercial shipbuilding yard in Scotland. It has now locked its doors to the workforce.
‘Unless the Scottish Government intervenes, this puts the final key in the door of commercial shipbuilding, which has a history of several hundred years in Scotland.
‘Not to intervene will be an utter betrayal by the Scottish Government and the First Minister.’
GMB official Alex Logan said: ‘There was no warning about this at all and it has come as a complete shock to the workforce. We’ve had an idea since before the summer that something was going on but have been unable to get any information from the management.’
Among those who lost their jobs was Jill Hughes, the yard’s first female apprentice, who was pictured, aged 19, in 2012 with Deputy First Minister Nicola Sturgeon at the launch of a ferry.
Finance Secretary John Swinney said: ‘The loss of any jobs in Port Glasgow is a devastating blow and we will work closely with the admin- istrator to deliver an integrated service to those losing their jobs.
‘We will also convene a task force which will aim to secure new opportunities for this commercial shipyard on the Clyde.’
Inverclyde Council would work with the government on the task force, he said, adding: ‘I will visit Port Glasgow on Monday to start this process.’
Inverclyde Council leader Stephen McCabe said: ‘I am shocked by this news about Ferguson’s but can assure the workforce and community we will do all we can to help.’