Scotland’s state-owned Ferguson Marine has launched a Ferguson Marine redundancy plan that could see 70 jobs lost, as the Port Glasgow shipyard waits for the Scottish government to confirm promised new contracts. Workers have been invited to apply for voluntary redundancy while construction winds down on the second of two long-delayed CalMac ferries.
The yard currently employs 283 staff, including 34 apprentices. The redundancy process, which is voluntary, is expected to reduce the headcount by roughly a quarter. Apprentices are unaffected in the short term, and a new intake of 10 trainees is about to begin its first year at college.
Ferguson Marine redundancy plan and the gap in work
The immediate trigger is the approaching completion of MV Glen Rosa, the second of two dual-fuel ferries whose construction has dominated the yard’s workload for years. The first vessel, MV Glen Sannox, was delivered in November 2024 after a troubled build blighted by design problems and disputes over costs. Glen Rosa is due for completion before the end of this year.
Once that handover takes place, the yard will have no confirmed future orders. Ferguson Marine chief executive Graeme Thomson said the situation required difficult but necessary action. ‘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.’
Thomson stressed that the redundancies would not affect completion of Glen Rosa.
Promised contracts still awaiting confirmation
The Scottish Government announced before the Holyrood election that it planned to directly award Ferguson Marine contracts for four vessels: two small CalMac ferries, a fisheries research ship, and a marine protection vessel. Ministers described the package as a ‘bridge to the future’ for the yard. But none of those contracts has been formally confirmed, with the government saying it is still carrying out ‘due diligence’ on the plan.
Economy, Tourism and Transport Secretary Stephen Flynn said the redundancy scheme was part of efforts to modernise the yard 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 added that even if a contract were awarded imminently, at least a year of design work would be required before the yard could start cutting steel.
The prospect of new orders has, however, already had one practical effect: it has allowed the firm to update its business plan, potentially unlocking £14.2 million of modernisation funding first announced by ministers more than two years ago. Ground investigation work is under way with a view to installing new equipment and software intended to raise productivity.
A shipyard under wider competitive pressure
Ferguson Marine is the last commercial shipyard on the Clyde. It was nationalised in 2019 following a dispute between its former owner and government-owned ferries agency Caledonian Maritime Assets Ltd (CMAL) over claims for extra costs on the two dual-fuel vessels.
The yard has successfully built more than 360 ships since it was founded in 1903, but its reputation has been damaged by the prolonged and costly saga of Glen Sannox and Glen Rosa. The Society of Maritime Industries has noted that foreign yards are typically able to undercut UK-based shipbuilders by 10 to 20 per cent, owing to cheaper labour costs and stronger state support abroad, particularly in eastern Europe and the Far East.
Two years ago the yard missed out on an order for seven small CalMac ships, a contract widely seen as an opportunity to rebuild its standing. Although its bid was praised for quality, CMAL awarded the deal to a Polish firm on price. Ferguson’s management has repeatedly called for ‘social value’ to be factored into procurement decisions, arguing that the wider economic benefits of building ships in Scotland deserve recognition. CMAL has said it is constrained by procurement rules that require all bidders to be treated equally.
A replacement vessel for MV Lord of the Isles went to open tender earlier this year after ministers rejected calls for a direct award. Ferguson’s was unable to bid, with its management saying CMAL’s pre-qualification criteria could not be met by any UK-based commercial shipbuilder. A shortlist of bidders has been drawn up, though CMAL has declined to name them. The winning bidder is expected to be announced early next year.
