Dundee-based Labour MSP Jenny Marra warned the city is in “economic crisis” following the collapse of McGill and Co.
Administrators have confirmed 374 jobs will go with immediate effect after the company ran into financial difficulties.
Ms Marra said: “McGill’s collapse into administration is more devastating jobs news for Dundee. There is deep worry too for the many local firms who work with McGill.
“There is no doubt now that the city is in economic crisis. With 850 jobs going at Michelin, engineering firms like Flint and Pressurefab shut, HMRC’s 300 staff losing their positions by 2022, NHS Tayside planning to shed 1,300 posts, 400 jobs on the table at the council and now 200-250 McGill jobs, the toll is running into the thousands.”
Dundee City Council leader John Alexander said: “McGills are a company with a skilled workforce and, as I understand it, orders on the books. I will be working with colleagues to ensure that everything is done to safeguard the workforce by finding a buyer for the group. I’ve already, as you’d expect, been in contact with the Scottish Government regarding this situation.
“It’s clearly another blow for the city after Michelin’s recent decision, albeit under very different circumstances.
“It’s all the more frustrating given recent events in the city and the collective work of the public and private sector to try to create new opportunities and increase jobs.
“Sadly, these decisions are not always within our gift but it doesn’t make us any less determined to push on in bringing jobs to the city.”
Dundee City East SNP MSP Shona Robison said: “The workforce at McGill is highly skilled and is a strength that will hopefully attract interest from other companies to take over the workload and safeguard jobs in the city.”
Her fellow SNP MSP Joe FitzPatrick said: “This is terrible news for the workforce and their families.”
Dundee West MP Chris Law said: “This is devastating news and my thoughts are with the workers and their families.
“It is another bitter blow for Dundee, especially at a time when the city is welcoming investment in jobs and infrastructure. This is a highly skilled workforce with a long history in the city and it is important that the administrators investigate all options, particularly those that can keep jobs and employment in Dundee.”
Scottish Government Business Minister Jamie Hepburn said: “I was very disappointed to learn about the situation at McGill & Co in Dundee and at its operations in Glasgow and Edinburgh.
“Scottish Enterprise engaged closely with the company in recent months and has worked with it to try and find a solution to its difficulties.
“I had spoken with McGill’s managing director and offered the full support of the Scottish Government and Scottish Enterprise. Unfortunately, McGill’s trading situation changed rapidly which meant a positive outcome solution for the company was not possible.
“Our Partnership Action for Continuing Employment (Pace) team has been alerted and stands ready to offer its full support to the workforce.
“A Pace event will be held in Dundee for affected staff next Thursday.”
Scottish Building Federation managing director Vaughan Hart said: “Our thoughts are with all those affected by McGill’s entry into administration, including those in the local industry supply chain. Coming so soon after the announcement of the closure of the Michelin tyre factory, this is more incredibly sad news for Dundee that will have a further negative impact on the local economy.
“In particular, if there are any construction apprentices involved, we will do what we can to support them through our apprenticeship arm – the Scottish Building Apprenticeship and Training Council.”
