Alexander Dennis is consulting on the redundancy of 160 roles in Scotland, citing government policies which it says disproportionately benefit overseas competitors, the company announced today.
The bus manufacturer, which is headquartered in Larbert, Scotland, is warning UK and Scottish governments that businesses from “lower-cost and lower-security economies” have been put at an advantage.
Alexander Dennis has 1,950 employees and apprentices around eight sites in the UK and says it is working hard to protect as many of the at-risk 160 jobs as possible.
In making its announcement, the NFI Group subsidiary highlights that import duties applied to electric buses are only 10%, which is “even lower than the 16% rate for equivalent diesel vehicles”. It adds its belief that the UK lacks trade remedy measures seen in other countries to promote domestic manufacturing.
The business also says the Subsidy Control Act 2022 prevents local authorities from granting subsidy “that gives any additional consideration or weighting to domestic manufacturers over any non-domestic provider”.
In addition, Alexander Dennis points out that businesses in receipt of government funding must adhere in Scotland to the Fair Work First standards around workers’ rights, which it says puts them at an extra disadvantage against some international competitors. This has led to its decision to “consider options to match production capacity with its order book”.
In further emphasising its value to the UK economy, it estimates it supports 6,350 people in its domestic supply chain.
Paul Davies, President and Managing Director of Alexander Dennis, says: “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.”
A government spokesperson responds: “It is concerning to hear these jobs are at risk of redundancy. The UK government has been talking to Alexander Dennis for some time and will continue these conversations to discuss their concerns.”
