Ferguson Marine, Scotland’s last commercial shipyard, is reducing its workforce by approximately a quarter as it completes construction on a second delayed ferry vessel and awaits new orders. The Port Glasgow facility currently employs 283 staff members and is inviting workers to apply for voluntary redundancy, with departing employees receiving £10,000 in addition to statutory entitlements. The reduction is intended to maintain the yard’s long-term viability during a gap in confirmed work.
The shipyard is nearing completion of MV Glen Rosa, the second of two dual-fuel ferries for CalMac, with delivery expected by year-end. The first vessel, MV Glen Sannox, was delivered in November 2024 following years of delays and cost disputes. Ferguson Marine has also completed subcontracting work on naval frigates but currently lacks confirmed future orders. CEO Graeme Thomson stated the firm must remain “lean, modern, and ready” to begin work on anticipated new contracts as soon as possible.
The Scottish government announced plans in March to directly award the shipyard contracts for four vessels, including two small ferries, a fisheries research vessel, and a marine protection ship. However, these contracts have not yet been confirmed, with ministers stating that due diligence processes and engagement with competition authorities remain ongoing. No timeline has been provided for contract confirmation. Government officials have indicated further announcements will be made to parliament.
Union representatives criticized the redundancy announcement, characterizing it as a failure by government to deliver promised work while contracts go to international firms. The GMB union noted that although the skilled workforce bears no responsibility for past difficulties, experienced shipbuilders are being encouraged to leave. Industry analysts point to cost pressures facing UK shipyards, which typically face 10-20% higher expenses than foreign competitors due to labor costs and state support differences. The shipyard’s apprenticeship program remains unaffected, with 34 trainees currently enrolled and 10 new apprentices beginning studies.
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