“No wages” for Arnish workers
14 Nov 2017
Workers at the Bifab yard in Stornoway are not guaranteed to get paid this week, according to an union.
The company has filed its intention to go into administration as a result of its “critical cash position.”
Hebrides News understands that a payment dispute may be connected to structures delivered earlier this summer.
Increased costs for materials and production is also a factor.
The firm is part way through an order for 26 turbine foundations for the 588MW Beatrice offshore wind farm in the outer Moray Firth.
Ten assemblies were shipped out of its yard in Methil in Fife in recent months.
Some 160 personnel were employed at Arnish last week, including a large number of
mainland sub-
Main contractor Seaway Heavy Lifting (SHL) said BiFab suffered “production problems and cost overruns” for the last year.
Seaway estimates that 61% of the work has been completed and to date it has paid BiFab 61% of the project value.
It said it has paid BiFab “in line with our contract” and on time.
Gary Smith secretary of GMB Scotland said: “We were told that there is no money to pay our members wages, stemming from a cash flow problem with the contractor Seaway Heavy Lifting (SHL).”
He added: “This is a critical moment for the future of BiFab, its workers and the communities these yards support.
“This is a viable workforce and these are viable yards -
“Letting these workers and their communities go under is not an option. We’ve got to battle for BiFab.”
A Seaway spokesman said the firm has been working pro-
He added: “We expect the shareholders of BiFab to stand behind the performance of the company.”
“SHL has always been keen to support BiFab’s workforce but we need BiFab’s shareholders to provide it with the financial stability it requires.
“Our priority is to ensure that our client, Beatrice Offshore Wind Ltd (BOWL), has the jackets in place ready to unlock the next phase of this exciting project.
“We remain committed to working with all stakeholders to find a solution that delivers the Beatrice project to BOWL on schedule.”
Economy Secretary Keith Brown said: “It’s not so much delayed payments as disputed payments, which may of course lead to a delay in payments being made, that would be the nature of a dispute.
“That is more in the character of the issue we’re looking at than a delayed payment.”
BiFab which does not have enough finances to cover its day-
BiFab is a major employer in Scotland with a workforce of 1,400 people across its sites in Fife and Stornoway.
This comprises 251 permanent staff and 1,132 employed via agencies.