Up to 70 job losses expected at beleaguered shipyard

Up to 70 workers are set to lose their jobs at government-owned shipyard Ferguson Marine.

The company announced it has opened a voluntary redundancy programme as it moves to the final phases of building the Glen Rosa, one of two long overdue ferries.

CEO Graeme Thomson said the job cuts, roughly a quarter of the workforce, were needed due to an “inevitable gap in workload”.

The yard is currently negotiating a contract with the Scottish Government to build four new vessels as part of the small vessel replacement programme.

The direct award of that contract came after the yard missed out on winning contracts to build new ferries via a competitive tender process.

Economy and transport secretary Stephen Flynn said the voluntary redundancy scheme would “help secure a viable future for the yard”.

Ferguson Marine has been under significant pressure over the last decade. In 2015, it won the contract for building two new ferries for the Clyde and Hebrides routes.

These were meant to be delivered two years later but were subject to significant delays due to problems at the yard and with the design of the vessels. The first, Glen Sannox, finally entered service last year while the second, Glen Rosa, is expected to be delivered later this year.

The various issues caused the price tag to balloon from £97m to almost £500m.

The yard and its workforce had been faced with an empty order book once the Glen Rosa was complete, after shipyards in Turkey and Poland were awarded contracts to build new CalMac ferries.

But in March this year, then deputy first minister Kate Forbes confirmed an order of two ferries for Caledonian Maritime Assets Limited (CMAL), a marine protection vessel and a research vessel. Due diligence is underway.

Thomson said: “Our immediate focus remains the safe, high-quality handover of Glen Rosa in Q4 2026. 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. 

“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.

“We take our responsibility to our workforce and community incredibly seriously. By offering a voluntary redundancy path, we want to support team members who have given so much to shipbuilding on the Clyde as they consider their next steps.

“At the same time, we are doing everything in our power to ensure the yard is structured to offer secure, long-term careers once the new build programme gets underway.” 

But the trade union which represents the workforce blamed the job losses on ministers’ failure to deliver new contracts.

GMB Scotland secretary Louise Gilmour said workers were being “encouraged to leave as those in charge send contracts everywhere but here”.

She added: “The lack of support, ambition and industrial strategy is abject… [The shipyard’s] reputation has been battered for ten years because of two calamitous contracts decided and driven by those in charge of our ferry network. Their hubris and incompetence have failed a blameless workforce that deserves the chance to turn the page.”

But Flynn said: “The voluntary redundancies scheme announced by Ferguson Marine today is 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. This is alongside their efforts to upskill workers, bid for new contracts and opportunities with partners.”

He is expected to update parliament on the contracts for the four new vessels shortly.