A buyer for BiFab … but not Burntisland

Unions welcome announcement but slam Government inaction

Leading strategic infrastructure projects and physical asset lifecycle management company InfraStrata plc, is delighted to announce it has acquired the assets of the Scottish-based offshore energy fabrication company, Burntisland Fabrication (BiFab) Limited. The sites will trade under the Harland & Wolff name.

This highly strategic acquisition of assets and leases spans across two sites in prime Scottish locations with particular regard to renewable, oil & gas and defence projects: Methil on the east coast of Scotland and Arnish on the west coast of Scotland. The BurntIsland site will not form part of the transaction.

Both sites will trade under the Harland & Wolff brand and will represent the final fabrication piece of its UK footprint, positioning the company to fully deliver on its existing strategy quicker than it would have done with only its two existing sites: Harland & Wolff (Belfast) and Harland & Wolff (Appledore).

Methil, the larger of the two sites will be heavily focussed on fabrication for the oil and gas, commercial and renewables markets, whilst Arnish lends itself to multiple opportunities across all Harland & Wolff’s five markets: defence, oil & gas, renewables, commercial and cruise and ferry.

Through this strategic ambition across various geographical locations of the United Kingdom, InfraStrata emphasises its local and cross government support; aligned even closer to the UK Government’s “levelling-up” agenda and the “Green Industrial Revolution”.

The two Scottish sites will work symbiotically alongside Harland & Wolff (Belfast) and Harland & Wolff (Appledore). 

John Wood, CEO of InfraStrata, commented: “With this acquisition, we now have a footprint in Scotland, which is the hotbed for major wind farm projects as well as for shipbuilding programmes. We have now positioned ourselves strategically across the UK with four sites capable of servicing our five core markets.

“This acquisition gives us the flexibility to optimise our operations across the Group and offer our clients the ability to fabricate faster and de-risk their exposure by offering multiple sites.

“As we move into larger contracts, it is crucial that we demonstrate the capacity to bid for and deliver on these projects. The acquisition of Bifab’s assets delivers that capability to us and will open up a larger demographic of tender opportunities.

“Finally, I wish to warmly welcome the personnel whom we have taken on at Methil and Arnish and I am confident that we will turn these facilities into highly successful businesses that generate jobs and investment into their local economies in due course.”

Harland & Wolff is a wholly-owned subsidiary of InfraStrata plc (AIM: INFA), a London Stock Exchange-listed firm focused on strategic infrastructure projects and physical asset life-cycle management.

Harland and Wolff (Belfast) is one of Europe’s largest heavy engineering facilities, with deep water access, deep water quayside berths and vast fabrication halls, with the addition of Harland & Wolff (Appledore) the company will be able to capitalise on opportunities at both ends of the market where it has strategic and unique assets that will be much in demand.

In addition to Harland & Wolff, it owns the Islandmagee gas storage project, which is expected to provide 25% of the UK’s natural gas storage capacity and to benefit the Northern Irish economy as a whole when completed. It is anticipated that the gas storage project will bring significant fabrication and construction work to the shipyard during its construction phase.

GMB Scotland and Unite Scotland have welcomed the announcement that two of the three BiFab fabrication yards have been bought out of administration by InfraStrata.

BiFab, which had three fabrication yards in Fife and the Isle of Lewis, went into administration in December last year following the Scottish Government withdrawing previous financial guarantees to support the manufacture of eight turbine jackets for the Neart na Gaoithe (NnG) offshore wind project at the yards. 

InfraStrata as part of a £850,000 deal has bought the sites at Methil in Fife and Arnish on Lewis. It is understood that InfraStrata, which owns the Harland and Wolff shipyard in Belfast, will bring the Scottish sites under the Harland and Wolff name as it attempts to bid for offshore wind projects and shipbuilding contracts.

Unite and GMB have demanded concrete actions by the Scottish and UK Governments to strategically support the offshore wind sector. The trade unions criticised the announcement by the Prime Minister in October 2020 to commit 60 per cent of the turbines to be manufactured in the UK as ‘empty rhetoric’ without a review of the Contracts for Difference (CfD), which should include local content and enforcement clauses. 

The trade unions also cited the various powers relating to planning, renewables energy, procurement, the Crown Estate and Marine Scotland which the Scottish Government should be using to exercise greater leverage in the contractual process.

In a joint statement, Unite Scotland Secretary Pat Rafferty and GMB Scotland Secretary Gary Smith said: “The announcement by InfraStrata that two of the BiFab yards will be bought out of administration is welcome news. It is also testimony to our members and their communities who have fought hard to keep these yards alive.

“We look forward to working with the company to ensure it is primed to win contracts for the offshore wind sector, and to having a positive working relationship underpinned by the Fair Work principles. We have always believed that the BiFab yards, and indeed yards and ports all over Scotland, are uniquely placed to capture the benefits of the offshore wind sector.

“However, the story so far has been one of government failure – thousands of jobs and billions of pounds have been outsourced around the world when Scottish communities should have been benefitting from these contracts. Now the Scottish and UK Governments have been given a reprieve and they need to step-up and support the new ownership.

“We urgently need an overhaul of the Contracts for Difference process to ensure local supply clauses are in-built at the outset of major contracts as part of a proper industrial and investment plan for the sector, otherwise the green jobs revolution will remain a fantasy.”

No bailout for BiFab

After exploring all options, both the UK and Scottish Governments have concluded that there is currently no legal route to provide further financial support to BiFab in its current form.

A joint working group will be formed to consider ways to strengthen the renewables supply chain in Scotland and to secure future opportunities.  

In a joint statement, the governments have committed to exploring options for the future of the yards and to strengthen measures to support the renewables supply chain.

Economy Secretary Fiona Hyslop said: “The Scottish Government has been working for more than three years to support BiFab.

“We have left no stone unturned in our search for a solution to the challenges faced by the business. As a minority shareholder, we have been exhaustive in our consideration of the options available to us to financially support BiFab from public funds.

“The Scottish Government has been clear that State Aid regulations are a barrier to us providing guarantees on the contract from Saipem to build foundation jackets for the Neart na Gaoithe (NnG) project. The UK Government has similarly concluded that there is no legal route for them to provide support.

“The situation at BiFab is a culmination of a number of issues, the main one being the unwillingness of the parent company and majority shareholder JV Driver to provide working capital, investment or guarantees for the company.

“We are determined to secure a new future for the yards in Fife and the Western Isles. We will explore options for the future of these sites and, through this new working group, work with the UK Government to strengthen the renewables and clean energy supply chain.”

Joint statement on BiFab from the Scottish and UK Governments:

Following discussion between the UK and Scottish Governments, ministers in both governments have concluded that, in the absence of a shareholder guarantee provided by BiFab’s majority shareholder, JV Driver, there is no legal route for either the Scottish or UK Governments to provide BiFab with the guarantees it would need to secure its contract with Saipem.

The UK and Scottish Governments are committed to investment in renewables and clean energy. The development of a domestic renewables supply chain is a key priority for both governments.

The UK and Scottish Governments are therefore convening a Joint Working Group to explore how existing policy measures can be used to strengthen the renewables and clean energy supply chain in Scotland, and look at options for the future of the sites where BiFab currently operates and other opportunities around Scotland, in a manner consistent with respective devolved and reserved competencies.

Responding to last night’s Scottish and UK Government joint statement concerning the refusal of financial support for the stricken BiFab yards in Fife and Lewis, Joint Union Secretaries Gary Smith and Pat Rafferty said: “Until the Scottish Government publishes the legal advice over its decision to walk away from BiFab, all the difficult questions remain unanswered.

“This evening’s statement is also disappointing given that our members learned of this through the media – it makes a mockery of the so called fair work agenda.

“The demise of Scotland’s best shot at building a manufacturing supply chain for offshore wind is down to a decade of failure from successive SNP and Tory Governments.”

GMB Scotland Marks Ten Year Anniversary of the Equality Act: What Now for Women Workers?

Today (Thursday 1st October) marks ten years since the Equality Act 2010 became law and GMB Scotland will be marking the anniversary with an online event, bringing together prominent lawyers and activists to discuss what the Act has meant for women workers, and what challenges still lie ahead.

The event is being hosted by GMB Scotland’s Women’s Campaign Unit, which is dedicated to organising women workers, to tackle pay injustice and inequality, and to challenge all employers and politicians, whether they be in local councils, Scottish or UK Governments, to properly value women’s work. 

It can be watched live at 19.00 hours tonight (Thursday 1 October) or watched via GMB Scotland’s Facebook page afterwards:

https://www.facebook.com/events/334544347769623

GMB Scotland Organiser Rhea Wolfson said: “There have been many significant victories won for and by women in the past ten years but despite the Equality Act and other anti-discrimination legislation, women’s work is woefully and systematically undervalued and underpaid.

“The question is, what now for women workers? The COVID crisis has surfaced some of the worst unchallenged cases of chronic low pay and exploitation of working women, none more so than sectors like social care where workers have been placed in the eye of a storm.

“It’s confirmed what we already knew. We need significant political and legal interventions to build a proper framework that’s support campaigns being led by women workers across Scotland to fight for pay justice.”

Safety in Schools

Important information for Edinburgh’s parents,carers and pupils

The EIS has responded to the Deputy First Minister’s announcement that Secondary school pupils aged 12 and over will be required to wear face coverings in school communal areas from the 31st of August.

EIS General Secretary Larry Flanagan said: “The EIS welcomes this decision by the Scottish Government today, which reflects the updated advice from the World Health Organisation recommending face coverings for those aged 12 and over, where 1m distancing cannot be maintained. Schools are busy places with a large number of adults and young adults moving around.

“The use of face coverings in these circumstances is a sensible and appropriate step to reduce the risk of COVID-19 spreading through school communities.

Mr Flanagan added: “While we welcome the announcement, the EIS believes that effective physical distancing between pupils is the best means of reducing the risk of COVID-19 spread in schools.

“This is an area where the guidance from the Scottish Government currently lacks specificity; there needs to be a much sharper focus on ensuring social distancing in schools to protect pupils, staff and the wider community. Smaller class sizes to ensure appropriate physical distancing of pupils are essential.”

He concluded, “Across all sectors, smaller classes would be a huge boost, also, to the educational recovery of those pupils most disadvantaged by the impact of lockdown. The Scottish Government, indeed, all political parties within the Scottish Parliament, should prioritise the expenditure required for the extra teachers needed to help our pupils.”

Face covering u-turn shows Ministers must listen to workers

In England, the GMB union has welcomed Education Secretary Gavin Williamson’s U-turn on face coverings in schools.

GMB, the union for school staff, says the Government’s u-turn on face coverings shows Ministers must learn to listen to workers.

Karen Leonard, GMB National Officer, said: “GMB wrote to the Education Secretary back in mid-July challenging the Government’s position on face coverings in school during the pandemic.

“Schools know social distancing will be extremely difficult and large ‘bubbles’ present a covid-19 risk. All we wanted was for staff who felt the need to wear a mask not to be actively discouraged from doing so.

“The Government appears to be ignoring the science in order to avoid a political hit. Now they’ve performed yet another u-turn.

“It’s time Ministers learned to listen to the concerns of the school staff who will be instrumental in keeping our schools safe and, importantly, open.”

Living wage for capital’s adult social care workers

Unite reps in Edinburgh have ensured a 3.3% uplift for adult social care contracts & a Living Wage.

Unite Scotland has welcomed the move by the Edinburgh Joint Integration Board (EIJB) to allocate £6m funding for adult social care workers and personal assistants who work in the third and independent sectors. 

Backdated to 1 April, social care support workers in Edinburgh will be awarded a real Living Wage of £9.30p/h, including sleepovers & hours worked by personal assistants.

The funding uplift was agreed on Monday at an EIJB meeting following extensive lobbying by Unite voluntary sector representatives in Edinburgh to ensure that adequate funding was allocated to deliver the 3.3% national uplift for adult social care contracts for the Living Wage commitment, announced by the Cabinet Secretary for Health, Jeanne Freeman MSP on 12 April.

Mary Alexander, Scottish Deputy Secretary: “This is a victory for Social Care in Edinburgh. It rightly recognises the critical role workers have, looking after vulnerable adults in Edinburgh.

“”The decision to allocate £6m will now ensure all adult social care workers commissioned by the local authority to provide adult social care whether in care homes, care at home or community-based services will not be working for less than the Living Wage of £9.30 for all hours worked including sleepovers. 

“It also rightly recognises the critical role social care workers have played in looking after vulnerable adults in Edinburgh.  Unite will continue to campaign for a national care service and Fair Work across the whole sector.”

STUC warns hospitality employers not to pass the burden onto workers as businesses reopen

Edinburgh pub worker calls on hospitality staff to join a union

Commenting on the re-opening of indoors hospitality, Roz Foyer, General Secretary of the STUC has reminded employers that workers are preparing to resist detrimental changes to contracts and conditions associated with the safe return to work.

Roz Foyer said: “Indoor hospitality re-opening safely depends on changes to working conditions. But these must not be allowed to come at a cost to workers.

“Workers are the heart of hospitality, but for too long employers have been able to pass the unstable condition of the industry onto their staff.

“We will not forget the businesses who refused to furlough their staff during this pandemic, and who have treated workers callously with attempts to make them sign away their terms and conditions in order to ringfence profit or prevent unexpected costs.

“From cafes like Coias in Dennistoun to cinema chains like Cineworld, workers have come together to win their demands in the return to work period.

“If you are asked to work differently or to sign a new contract, don’t accept, delay, and work out with your colleagues whether you are happy with the proposal. Then join a union and take action.”

Matthew Waddell, 19, who returned to work at the Diggers pub yesterday, urged workers to be prepared to resist the prospect of changes to work and conditions.

He said: “The incoming economic crisis should be a call to all workers to join unions, unionise their workplaces and make sure those unions are active.

“The precarious nature of hospitality work and the effect a COVID recession will have on it makes unionisation all the more urgent.

“The Better Than Zero campaign against precarious work is on hand to give guidance and support for hospitality workers and any other workers who do not have unions.”

Shop workers ‘nervous about the introduction of mandatory face coverings’

Retail trade union Usdaw has received numerous calls from concerned members after the Scottish Government announced that face coverings will be mandatory in shops from this Friday.

Usdaw officials met with government ministers on Monday to urge retention of the two-metre rule and seek assurances that shop workers will not have to enforce the wearing of face coverings. Usdaw is now concerned that Government guidance has not yet been published.

Stewart Forrest, Usdaw’s Scottish Divisional Officer, says: “Our big concern is who enforces mandatory face coverings and we made that clear to the Scottish Government on Monday.

“Shop workers are worried that they will be expected to turn people away from the store because they do not have a face covering or it is not being worn properly. Incidents of abuse against shop workers have already doubled through the coronavirus emergency and this would be yet another flashpoint.

“Government guidance has not yet been published and that is a concern when we are so close to the new face coverings rule coming into force on Friday. We need assurances that the existing two-metre rule will be observed and enforced. In our experience retailers have taken the two-metre rule seriously and are complying, we see no reason why it should be relaxed.

“Safety in stores needs customer co-operation and we urge the public to respect staff and observe social distancing. At no time should abuse be a part of the job. Shopworkers deserve respect.”

PPE on it’s way to care homes across Scotland

Additional supplies of Personal Protective Equipment (PPE) are to be delivered directly to care homes across Scotland to help meet the increased demand caused by the coronavirus (COVID-19) pandemic.

NHS National Services Scotland will prioritise the delivery of stock directly to care homes where the virus is known to be present.

Stock will also continue to be provided to local hubs which supply PPE to other social care workers.

Each location will receive a week’s supply of equipment, including aprons, fluid resistant surgical masks and gloves.

The situation will be reviewed next week based on information supplied by care homes on their own supply of PPE stock.

The National Services Scotland Social Care triage service will continue to provide an emergency service in the case of unexpected short term demand.

Health Secretary Jeane Freeman said: “The dedication of those who work in the care sector is hugely appreciated and ensuring those staff are protected is a priority for me.

“They are doing a remarkable job in very difficult circumstances, and we will support them as they do that.

“We have dedicated teams working on the procurement and distribution of PPE to our health and social care workers.

“I believe that providing additional supplies straight to care homes will ensure all care homes in Scotland have enough PPE to allow them to continue to safely provide care and support to their residents. It should also allow time for care homes to work on sourcing their own stock.

“We are also working closely with COSLA to ensure the existing service provided by the local hubs is working as efficiently as possible.”

Scottish Care Chief Executive Donald Macaskill said: “Scottish Care warmly welcomes the announcement by the Cabinet Secretary that direct distribution of PPE to care services will be introduced.

“This will significantly support the protection of staff, residents and clients and the staff who care for and support them.

“I am grateful for the immediacy of response from Scottish Government and the recognition of the need to take these measures with urgency. All of us are working with determination in challenging circumstances to meet the threat of coronavirus.”

On Thursday, Social care providers and unions warned that a critical lack of protective equipment and testing has allowed coronavirus to “sweep through” social care.   

In a joint statement – signed by the Association of Directors of Adult Social Services, UNISON, Unite, GMB and TUC – ministers are told that care workers and residents are still being exposed to unnecessary risk.

The care providers and union leaders warn that staff are being forced to risk their lives with care services struggling to get the equipment they need:  

“Social care is facing a crisis without precedent. Problems with supplies of protective equipment and a lack of testing is causing much anxiety amongst employers, staff, and the families of the people they care for. Many care home residents and care workers have already died.

“People who rely on social care are often more vulnerable to catching and dying from Covid-19. Yet a month into this crisis, many care workers are still working without suitable PPE, despite their heightened risk of exposure to the virus and to spreading it.

“A critical lack of PPE and testing of social care staff and service users is putting them at unnecessary risk of exposure – and means we are almost certainly underestimating how far the virus has spread.

The care providers and union leaders say that without urgent action the virus will continue to devastate the sector:  

“When patients with Covid-19 are rapidly discharged from hospitals to care homes to free up NHS beds, it risks spreading the virus to care homes and putting staff and residents in danger.

“We are pleased that the government has at last published its strategy for social care. But it needs to go further and action will be more important than words.

“Amidst growing evidence that Covid-19 is sweeping through social care with devastating results, we call on the Government to step up the fight against Covid-19 by:

  • Publishing a national procurement and distribution strategy for PPE that includes the social care sector, so that care homes and social care providers aren’t left to source their own PPE amidst global shortages and inflated prices.

  • Setting a clear deadline for when all care workers, clients, personal assistants and residents who need it will have access to testing.

  • Stopping the rapid discharging of Covid-19 patients to care homes unless there are key checks about safety

  • Fully involving the social care workforce and its unions and employers in responding to the crisis.

The care providers and union leaders say ministers must “learn the lessons” from the crisis and provide better funding for social care in the future:   

“Carers, local government, providers, regulators and civil servants are working tirelessly to respond to the crisis. But social care has been the poorer cousin of the NHS for too long. This pandemic is showing just how essential this largely female workforce is.

“Social care workers look after us all. Our parents, our grandparents, our partners, siblings and adult disabled children. Their work has long been undervalued, with services underfunded, staff often on the minimum wage or zero hours contracts and 122,000 vacancies in the sector.

“When this dreadful pandemic eases the Government must learn vital lessons about the failings of a social care system based on low pay and insecure work and put in place proper funding and a long-term plan for social care as soon as possible.”

Coronavirus crisis: local government unions call for consistency

Scotland’s leading trade unions in local government are calling on First Minister Nicola Sturgeon to take urgent action to address the inconsistent approach being taken by local authorities, which could risk lives.

UNISON, Unite and GMB collectively represent over 120,000 workers in local authorities across Scotland, many of whom are on the frontline delivering essential services and providing care to vulnerable groups.

The trade unions have been involved in ongoing discussions with the Convention of Scottish Local Authorities (COSLA) on their response to this crisis, but are increasingly concerned that the lack of urgency and consistency is now putting service users and workers at risk that it now requires the First Minister’s direct intervention.

In a letter to the First Minister the trade unions are highlighting a number of key concerns including:

  • Personal Protective Equipment (PPE) – Ongoing concerns regarding the availability and quality of PPE for workers. There are specific issues regarding the availability of PPE for those working with vulnerable users in home care settings and the need for urgent clarification over the self-isolation for workers who have been in close contact with service users confirmed as having the virus.
  • Testing Workers – There is an urgent need to test frontline workers in accordance with WHO guidance. There appears to be no strategy or consistency currently about when tests will be rolled out and who will be tested.
  • Social Distancing– Serious concerns continue about the ability of workers to observe social distancing measures at work.  There are particular difficulties with workers being told to travel to sites in the same vehicle – in waste and home care services in particular.
  • Key Workers– The need for greater clarity around who meets the definition of a ‘key worker’ because there are many situations where some workers in some authorities are being deemed ‘key workers’ and others are not.
  • Waste Collection– The need for a one nation policy on residential waste collection. 32 local authorities are doing different things – some maintaining a full service, others closing all waste and recycling centres.

The Joint Trade Unions state:  “UNISON, Unite and GMB have been raising a number of key concerns in relation to the inconsistent and potentially dangerous approach to dealing with the Covid-19 pandemic with COSLA.

“We believe that local government workers, and those in the third and private sectors, delivering our essential services must be protected in terms of their health both physical and mental. To date this is not being done anywhere near effectively enough.

“We are on the brink of the peak of the pandemic and still there exist major concerns over the availability, and guidance around the use of, personal protective equipment – particularly in the social and residential care sector – testing of frontline staff, the difficulties in workers being able to observe social distancing at work and the definition of who is a key worker.

“The trade unions appreciate that this is an unprecedented time but the lack of national, consistent, guidance in these areas has the potential to put lives at risk.

“We need a national co-ordinated response – the First Minister needs to lead the effort to ensure that national guidance is both clear and consistently applied by local authorities.”