Around 160 jobs are at risk at a Falkirk-based bus manufacturer due to an “uneven playing field” in the industry sector.

Bus manufacturer Alexander Dennis broke the news this afternoon, saying a consultation process had been launched due to the government zero-emission bus funding ‘Disproportionately benefitting” competitors with lower labour costs.

Alexander Dennis factory is owned by Canadian manufacturing company NFI Group Inc, which employs around 1950 people in the UK and 6,350 people in the domestic supply chain.

The Larbert-based factory is the group’s largest in the UK.

Alexander Dennis bosses acknowledged that there are record levels of funding for zero-emission buses being made available from both the UK and the Scottish governments.

However, the company said they have been disadvantaged by policies that “actively underpin and encourage an uneven playing field working against British bus manufacturers” and receiving Scottish Government funding limits them due to adhering to the Fair Work First standards which is not a requirement of suppliers whose productions take place in other countries.

The statement continued: “Neither are bus operators incentivised or rewarded for choosing companies that meet Fair Work First standards when funding is awarded. This not only puts domestic manufacturers at further competitive disadvantage but also undermines the value of this flagship policy as government-funded work is shipped offshore.

“As a result of the combined effects of these policies on the UK bus market, Alexander Dennis must consider options to match production capacity with its order book, particularly in its Scottish manufacturing facilities.

“A statutory consultation has been launched with 160 roles in Scotland at potential risk of redundancy.”

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Managing Director at the bus firm, Paul Davies said he was “deeply disappointed” with the decision, but government policy is what is threatening the jobs.

He said: “Competition in itself is healthy, but when taxpayer money is spent with little domestic industrial, economic or employment benefit and bus companies effectively are incentivised to buy from lower-security economies, it creates an incomprehensible dynamic and an uneven playing field.

“While our statutory consultation has commenced, we will continue to do everything we can to save and protect as many jobs as possible. We will continue our dialogue with governments to identify potential solutions to level the playing field, strengthen our industry and drive investments in local jobs and domestic supply.”

Unite the Union has since responded to the news of the consultation and said it will have a “huge” impact on the local community as well as the workers.

The union has “demanded” meetings with both the company and the Scottish Government to address the issues and discuss resolutions

Unite Industrial Officer Pat Egan said: “The announcement of 160 potential job losses at Alexander Dennis in Falkirk is deeply alarming. Be in no doubt that the impact on the workforce and the local community will be huge.”

Alexander Dennis should be one of Scotland’s green manufacturing jewels and we should be creating more jobs not cutting them to deliver the green buses of the future. Instead, we face another blow to our manufacturing base on the back of the devastating news coming from Grangemouth.”

We are demanding meetings with the company and the Scottish Government to explore all avenues which can protect jobs because if Scotland wants to promote bus travel and achieve lower carbon emissions then we need a manufacturing base capable of delivering these objectives.”