Alexander Dennis, a subsidiary of NFI Group, has initiated a consultation process regarding 160 jobs at risk of redundancy in Scotland.
This announcement comes despite record levels of funding from both the UK and Scottish governments for zero-emission buses. Indeed, the company claims these have disproportionately benefitted competitors from lower-cost economies.
Alexander Dennis employs nearly 1,950 people in the UK and supports an additional 6,350 jobs through its domestic supply chain.
The manufacturer has now raised concerns about the uneven playing field for UK-based manufacturers.
Alexander Dennis has consistently invested in its UK facilities but believes government policies have failed to support these efforts, putting the company at a disadvantage compared to international competitors.
Paul Davies, President and Managing Director of Alexander Dennis said: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.
The company has expressed frustration with the current government policies, including the 10% import tariff on electric buses, which is lower than the 16% rate applied to diesel vehicles.
This disparity arguably discourages investment in domestic manufacturing and allows overseas competitors to undercut UK manufacturers.
The situation is further complicated by the UK’s Subsidy Control Act 2022, which prevents authorities from giving preference to domestic manufacturers when awarding funding.
What’s more, in Scotland, the problem is compounded by the requirement for UK-based manufacturers to comply with the Fair Work First standards, which mandate higher wages and better employment conditions. However, these standards do not apply to international competitors.
Due to these challenges, Alexander Dennis is now considering reducing its production capacity to align with its order book. The statutory consultation process involves 160 roles in Scotland, primarily affecting its manufacturing operations.
Davies added: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.
