In the wake of recent government statements, one of Scotland’s most influential unions has strongly appealed against the privatisation of Ferguson Marine.
The GMB Scotland union warns that this move may potentially “sabotage” the progress being made by the firm under public ownership.
Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, Neil Gray, recently signalled that plans were underway for the taxpayer-funded Ferguson Marine to revert to private ownership.
The union insists that this is a step in the wrong direction, arguing that past experiences should serve as a lesson for the government.
In a letter to the minister, GMB Scotland representatives contended that Ferguson Marine could become the “jewel in the crown of Scottish shipbuilding,” but only if it remained in public hands. They stressed, “Ministers must learn from the mistakes of the past.”
Ferguson Marine was previously under the management of business tycoon Jim McColl, but it ran into significant financial difficulties. This culminated in a dispute over protracted delays and rising expenses related to the delivery of two crucial ferries, leading to the firm being nationalised by the Scottish government four years ago.
The First Minister of Scotland said:
“Of course, the Government stepped in and saved hundreds of jobs on the Clyde. I make no apology for that. There have undoubtedly been challenges, which the Government has fronted up. However, when it comes to the GMB’s letter and this issue of public versus private ownership, what Neil Gray said has been the Government’s position for a long time. It has always been the intention of the Scottish Government to return Ferguson Marine to private ownership. That was made clear when we announced that the yard was being taken into public ownership in the first place.
Having seen the GMB letter, I can say that there is not much in it that we disagree with. We want to work with the GMB and with the wider workforce to secure the best possible future outcome for the yard. We absolutely have faith in that workforce and in the future of the yard. Investment in the yard is about more than just profitability, important as that is. It is about the retention of skills and jobs and manufacturing capability. Those will be key considerations in any decision on the future of the yard.
Any deal to see the yard returned to private ownership must present value for money, but let me be absolutely unequivocal that it must also ensure that it continues the good work on fair work that is at the heart of everything that this Government does.”
Manufacturing is now underway at Ferguson Marine in Port Glasgow, on the first of three units to be built for HMS Belfast, the third City Class Type 26 frigate currently being constructed by BAE Systems, in what the firm calls “a new dawn” for the Port Glasgow shipyard.
When ready later this year, the modules will be transported to BAE Systems’ Govan shipyard ready for assembly as part of HMS Belfast, the third frigate in a series of eight warships that BAE Systems is building for the Ministry of Defence.
I do understand the GMB position. Much as I disagree with it. The yard wouldn’t last two minutes without subsidy. The reality is there are plenty of job opportunities with Babcock, BAE surface and BAE submarine for anyone willing to go a short distance. Indeed there are more skilled vacancies than workers. Sad as it is Fergusons, as a shipbuilding entity, should have been allowed to die. The site is too small and the wrong shape for really efficient ship building. On that note land around the BAE and Babcock yards should be safeguarded, in planning terms, so it is… Read more »
I suppose we have to ask should the UK be in the ferry building game. With the ramp up in FSSS as well as major increase due to AUKUS ship building and the T32 I’m guessing a small yard like Ferguson can probably get by making blocks. Clearly it’s completely incapable of making ferry’s at anything approaching a reasonable price. With unemployment currently non existent and government budget being hammered we also need or ask if it’s worth subsidising what are mid skilled low paid jobs just so we can stay in the ship building game for little more than… Read more »
Jim if that is the centre of the UK shipbuilding industry it should be modern producing a quality product at a competative price whilst significantly shortening the build times. In this way the order books should remain full & the industry profitable.
Fergusons doesn’t have the site size to be a modern yard. There isn’t space for automated linear plate line leading to a block shed leading to a build hall. As I’ve said in the thread by bake in old school inefficiencies. I think this is a bridging measure until the new BAE build shed comes online. They can then do blocks in the existing build hall where there will be loads of space. Space is golden to efficient construction. As soon as your activities are constrained by physical issues – costs start to escalate. Irl you are trying to remove… Read more »
Sunseeker turns over more than 10 times the revenue of Ferguson marine. I think people struggle to get their heads around actually what a small portion of UK marine industry it is. At times we get all melancholy about ‘traditional industries’ which are not that valuable to the economy. Yes there’s peoples jobs but the sector has a skill shortage anyway.
Unemployment non existent? People on some sort of hand outs and unproductive people has never been so high. What is mid skilled and low paid?
Hi SB – I gather that there is some transfer of skills from Ferguson to BAE and Babcock going on now. It may be that some cherry picking is happening. BAE may be taking a risk in placing some work on HMS Belfast but I expect what they build will be monitored carefully.
The UK has too few shipyards left now so maybe its for the best in the long run
I’m afraid that I disagree.
The only reason using Fergusons makes sense is the uncompetitive nature of T26’s build costs.
If you want cost efficiency you want a compact linear line.
Making blocks at an uncompetitive yard and hauling those blocks around is total nonsenses.
Every meter you move something, every crane operation has a cost and time attached to it. Time also costs money.
So if you want build costs down then a modern automated facility is the way to go.
This is all true – however there must be a reason why BAE have placed business with Fergusons. It might be that they are really after their skilled people. And when have costs ever stopped the defence industry from making decisions like that!
BAE were probably told to give Ferguson the work with financial incentives provided to cover the inefficiency of it.
While they modernise their build facility?
Like SB said they can place work with Ferguson because BAe is not that efficient at the moment, they priced T26 batch 1 on an inefficient build process in the exist sheds. They have enough margin to place some work elsewhere and soak up the costs.
Simple rule in manufacturing if you moving it you not making money, you only add value to part where you work on them, moving a part or assembly from a to b adds zero value to the part
Ferguson and their ferry contract are a train crash. Basil’s comment above about financial incentives may be right but I would add that BAE may have their eye on the yard itself, though it would apparently need a big upgrade and the management are obviously crap
Firstly, it’s metre, secondly, warships have been constructed in blocks for generations & BAE are well versed in this process. T26 costs are carefully monitored & not, necessarily, “uncompetitive”.
I can see why the Union does not like this as the company will no longer be bailed out by the UK taxpayer. It will have to become competitive! Something that appears difficult for shipbuilding in the UK. If it were not for the RN orders in Scotland I suspect Shipbuilding in Scotland would have gone under. If RN orders go south if Scotland does become independent it is hard to see Scottish shipbuilding surviving. The idea the the RW would build its warships overseas is a political non-starter.
Yards in the UK need investment utilising automation etc. where appropriate so that they can provide a quality product whilst also being competative on the world stage.
I can only image that they don’t want to privatised because they won’t be on the government gravy boat. Also, to quote Dr Raymond Stantz from Ghostbusters “I’ve Worked in the Private Sector, They Expect Results“
All staff on new contracts would get less holiday , sickness pay, pension etc , some of the ways used to provide 5 to 15 % cost savings!
Perhaps Ferguson’s would be better off as a subsidiary of BAE, Babcock or Harland & Wolf – specialising in ferries if orders can be secured but part of a bigger company that can transfer skilled workers to it’s other yards or have them build blocks for larger projects if not.
Fergusons can build the type of ferries required by CMAL for the majority of Scottish Island routes, the problems was the SNP govt imposing a requirement to use an experimental duel fuel engine to get around procurement laws and award the contract to this yard. If both UK and Scots Government are serious about maintaining these yards and skills they need to ensure that contracts are written that enable yards to compete similar to what France does, also the union need to play their part to permit maximum productivity. Whilst at it the UK should make it known it will… Read more »
Slave shareholders = taxpayers
Get the super glue ready!
CLOSE IT. once and for all, proved they are not a skilled labour force, they would struggle to deliver pizza
I do not agree their performance has been pathetic and it would be better closed gather then it becoming a money pit for the taxpayer. The workers can try their luck with BAE.
If you cannot build a ferry how can you build a warship!
That should read ‘I do not disagree’..
The government plans to sell off Fergusons. Why have BAE placed work with Fergusons. Maybe a BAE buyout of Fergusons, is already on the cards?
Ah GMB. Atrocious narcissistic union and I’ve had many dealings with them. Thoroughly unprofessional when compared to Unite and Unison. Press release happy
Here we go again. Globalist politicians have a one size fits all mentality. Everything must be privatised and sold off to foreigners. It’s like taking a healthy organism and then transplanting its vital organs to the outside of it’s skin. Who needs means of production anyway. Right guys?.