HUNDREDS of jobs have been saved at engineering firm BiFab after the Scottish Government stepped in to help settle the dispute.
Burntisland Fabrications (BiFab) had been at threat of going into administration, putting at risk 1400 jobs at its sites in Burntisland and Methil in Fife, and in Arnish on the Isle of Lewis.
BiFab were in dispute with offshore contractor Seaway Heavy Lifting (SHL) and Scottish and Southern Energy (SSE) over unpaid bills.
Unions said SNH reneged on a payment for an already completed windfarm, part of a project involving SSE.
A financial package to complete the contract has now been provided by SHL, SSE and the partners to the Beatrice Offshore Windfarm project, JCE Offshore.
The commercial agreement will see BiFab receive payments to alleviate immediate cash flow issues enabling the threat of administration to be lifted and ensuring the full funding of the Beatrice contract.
The Scottish Government has also indicated that it will, if necessary, make available a commercial loan facility to BiFab.
First Minister Nicola Sturgeon ended a UN trip early to help the Scottish Government bring the parties round the table.
Sturgeon said: “I am pleased that after an extensive series of talks over the last week and two days of intense negotiations we have been able to broker a commercial agreement that lifts the threat of administration from BiFab and allows work on the current contract to continue.
“In particular I welcome the moves made by Seaway Heavy Lifting, SSE and the partners in the Beatrice Project, JCE Offshore and Siemens to resolve this situation and enable BiFab to continue its work on this contract.
“Over the last seven days we have worked to ensure all partners understood the urgency of the position BiFab found themselves in and the part they could play in relieving the financial pressure on the company.
"Seaway Heavy Lifting and SSE in particular have chosen to back BiFab today to complete their contract and that is a real vote of confidence in the company and the workforce.
“I know that this has been an anxious time for people employed at BiFab, as well as their families and the wider communities of Burntisland, Methil and Arnish and the trade unions have ensured that the importance of this company was made clear to all companies involved.
“All companies including BiFab have had to take difficult decisions to secure this outcome. While this deal lifts the immediate threat of administration, we recognise that there is a lot of work still to do to secure the long term position.
"Ministers will continue to work with BiFab, the trade unions and industry partners to identify ways to secure the long term future of renewables manufacturing on these sites.”
Earlier this week hundreds of workers took to the streets of Edinburghs, calling for support from the Government to help resolve the dispute.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel