A Fife firm has told its 90-strong workforce that their jobs are at risk.
The notice of risk of redundancy has been issued at Dunfermline manufacturing firm Greenfold Systems.
It follows plans by major customer, bus firm Alexander Dennis Ltd (ADL), to move its operation to England.
Around half of Greenfold’s staff work on constructing the sides, interdecks and roofs of buses for ADL.
Earlier this month, ADL, which has factories in Falkirk and Larbert, revealed plans to move its manufacturing to Scarborough.
Greenfold Systems staff told jobs at risk
Greenfold Systems managing director, Craig Waterson said the Pitreavie Business Park firm was preparing for all eventualities.
One of the company’s three Dunfermline buildings is dedicated to the work on the buses.
Craig said: “What happens with ADL remains to be seen. We would, of course, like a clearer answer but we’re not going to get one any time soon.
“A communication has been issued to staff essentially telling them that their jobs are at risk as a result of the ADL situation.
“We will give another update when we know more. We are weighing up life with and without ADL.”
Reduction of work from ADL
Mr Waterson said Greenfold was supplying the parts for 12 buses a week to ADL a few years ago. However, this has gradually reduced to five buses a week.
He said the rest of the company’s order book was strong.
He added: “It’s a difficult situation. We’ve got a good business but the ADL situation will affect us to some degree.
“We have a business continuity plan in the event of any customer pull-out. ADL is a sizeable customer.
“ADL have pulled out three times before and we’ve survived the previous three occasions, not without difficulty. The strength of the rest of our order book is good.
“We are under consultation with ADL and I hope that has a positive outcome.”
‘Difficult time’ for Greenfold Systems
ADL has cited strong competition from China among its reasons for the move.
The issue has become a political football, with Labour leader Anas Sarwar claiming the Scottish Government secured just 44 buses from ADL as part of the Scottish Zero Emission Bus Challenge Fund scheme last year.
First Minister John Swinney has said he is “deeply concerned” about the firm’s plans and said state aid regulations prevented the government from directly procuring from a single supplier.
Dunfermline and Dollar MP Graeme Downie has written to the first minister following the Greenfold Systems jobs threat.
He said: “The failure of the SNP to properly support Alexander Dennis and bus building in Scotland has put hundreds of jobs at risk including these people in Dunfermline.
“I know the management are doing everything they can to support workers in a difficult time and to ensure the viability of the business.”
Conversation