Ferguson shipyard to cut a quarter of its workforce

Scotland's state-owned shipyard is to cut nearly a quarter of its total workforce while it waits for confirmation of promised new orders.

Workers at Ferguson Marine have been invited to apply for voluntary redundancy as construction draws to a close on the second of two long-delayed CalMac ferries.

The Port Glasgow firm currently employs 247 core staff, 31 agency staff and 32 apprentices - but says it expects to shed 70 posts through a voluntary redundancy process.

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 - but unions described the move as "a betrayal of a blameless workforce".

BBC Scotland News understands those who choose to leave the firm will receive £1,000 per completed year of service, up to £10,000.

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 (CMAL) over claims for extra costs for 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.

Ferguson Marine CEO 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.

It said the vessels - two small CalMac ferries, a fisheries research ship and a marine protection vessel - would provide a "bridge to the future" for the yard.

The then Economy Secretary Kate Forbes said the government had "done a lot of the upfront work in terms of scoping out, securing some of the legal advice about what is possible".

But she added that engagement with the Competition and Markets Authority would be required.

Since then none of the contracts have been confirmed, with ministers saying "due diligence" is still being carried out.

Economy, Tourism and Transport Secretary Stephen Flynn said the redundancy scheme was part of efforts to modernise the shipyard and put it on a more competitive footing.

"The action that the leadership team at Ferguson Marine is taking today is necessary to help secure a viable future for the yard, and that of commercial shipbuilding on the Clyde," he said.

Flynn said he had been assured that the reduced workforce would not affect the building of the MV Glen Rosa.

And he added: "Our intention to directly award four vessels continues to undergo full due diligence further to next steps which will be announced to parliament in due course."

Louise Gilmour, Scotland secretary of the GMB union, said ministers had failed to deliver new contracts while sending work around the world.

"Fergusons was once Scotland's ferry factory with a worldwide reputation for excellence and should be again," she said.

"Instead, skilled and experienced shipbuilders are being encouraged to leave as those in charge send contracts everywhere but here."

She said the "hubris and incompetence" of those in charge of Scotland's ferry network had "failed a blameless workforce that deserves the chance to turn the page".

Local Labour MP Martin McCluskey said the news was "deeply concerning" and part of a "jobs crisis" in Inverclyde.

"The Scottish government needs to step up, move faster and do everything within its power to secure the future of Ferguson Marine and the skilled jobs that depend on it," he said.

How can the Ferguson shipyard have a future?

Why was Glen Sannox so hard to build?

The Ferguson ships nobody talks about

Even if a new contract was awarded imminently, at least a year of design work would be required before the yard would be in a position to start cutting steel.