Scotland’s state-owned shipyard is to cut nearly a quarter of its workforce while it waits for confirmation of promised new orders, in a move unions have described as “a betrayal of a blameless workforce”.
Workers at Ferguson Marine in Port Glasgow have been invited to apply for voluntary redundancy as construction draws to a close on the second of two long-delayed CalMac ferries. The yard expects to shed around 70 posts, according to the BBC, with those who leave receiving £1,000 per completed year of service, up to £10,000, on top of their statutory entitlements.
The Scottish government has promised to directly award the yard new orders for four smaller ships, but ministers say they are still conducting “due diligence” on the plan. Ferguson Marine said the job losses would protect the long-term viability of the yard.
Ferguson Marine is the last commercial shipyard on the Clyde. It was nationalised in 2019 after a long dispute between its former owner and government-owned ferries agency Caledonian Maritime Assets Ltd over claims for extra costs on two dual-fuel CalMac ferries. The first, MV Glen Sannox, was finally delivered in November 2024, while MV Glen Rosa is due for completion by the end of this year.
The shipyard recently completed sub-contracting work for BAE Systems for new Type 26 frigates and currently has no confirmed future orders. MV Glen Rosa has been moved downriver to Inchgreen for final fitting out and commissioning, leaving the main yard without a ship under construction for the first time in 12 years.
Chief executive Graeme Thomson said the yard’s immediate focus was the handover of Glen Rosa before the end of this year. “However, as the vessel nears completion, we face an inevitable gap in workload while we work with the Scottish government to make the relevant preparations to enable us to proceed with contract negotiations,” he said.
“Shipbuilding capability relies on continuity and while changes of this nature are difficult, taking proactive action now ensures we protect the long-term viability of the yard and remain lean, modern, and ready to cut steel on the new fleet as quickly as possible.”
In March, before the Holyrood election, the Scottish government announced plans to directly award the shipyard contracts for four future vessels: two small CalMac ferries, a fisheries research ship and a marine protection vessel, described as a “bridge to the future” for the yard. Then Economy Secretary Kate Forbes said the government had “done a lot of the upfront work” on the plans, but added that engagement with the Competition and Markets Authority would be required.
Since then none of the contracts have been confirmed, and the BBC understands the Scottish government has not yet contacted the CMA for guidance on the legality of its proposals. Holyrood’s political magazine reported the yard had opened the voluntary redundancy process with up to 70 jobs at risk.