Final blow for Clyde shipyard could backfire on Labour officialslast week with a warning that the group had to be "half the size buttwice as good", and said it would withdraw from one of its four coreareas - almost certainly shipbuilding. Almskog had been carrying outa review of the group after record losses of #150 million last year.Almskog said there would be "no sacred cows" in his radical plans.
Unions at Govan and Clydbank are getting together to opposeclosure and, if necessary, back the selling process. But one well-placed union source is already pessimistic about the outcome. Hetold the Sunday Herald that he thought the prospect of an MoD orderfor Govan was simply paying lip service during the election campaignto saving the shipyard.
He said it was an ominous sign when Tony Blair visited the Yarrowshipyard on the north side of the Clyde six weeks ago, but bypassedGovan. Another union source said they were looking to the governmentand not Kvaerner to save jobs. "We do not want crocodile tears - wewant support. Will the government find a buyer or will we be left toour own devices?"Some fear that Kvaerner will want to kill off Govan's viability,making it easier for them to sell other yards on the continent tocompetitors.The future of Kvaerner's operations could dominate the second weekof the Scottish election campaign, replacing the parties' preparedpropoganda.SCOTTISH Office ministers have failed in their bid to keepKvaerner on the Upper Clyde - a devastating blow which will wipe out2000 jobs in the west of Scotland and could erode Labour'scommandinglead in the Scottish election campaign.The Norwegian industrial conglomerate will announce the closure ofboth its Govan shipyard, which employs 1100, and its Clydebankengineering works, which has 800 on its payroll. The Sunday Heraldunderstands the workforce will receive 90 days' notice of redundancyon Tuesday, at cost to the company of #14 million.The grim news will come just a day after Labour's manifesto launchand at the end of a week when they thought they had the SNP on theback foot.Ministers had been battling over the last month to keep Kvaerner'soperations open at least until a buyer could be found. The firm hasbenefited from about #90m in subsidies since it took over the Govanyard in 1987.But, Kvaerner maintains the shipyard has never been profitableunder its ownership. The closures will drop a bombshell into themidst of the Scottish election campaign. It will be a particularembar-rasment to Industry Minister Lord MacDonald, himself a formershipyard worker.The SNP, who are in a close contest in Govan, will be quick toexploit an example of Labour seemingly letting down its ownsupporters.A source close to the negotiations to keep the factories opensaid: "Gus MacDonald and his team have worked tremendously hard tokeep Govan and Clydebank open."The STUC's Bill Spiers is appealing for a party political truce onthe issue - "We do not want this turned into a party politicalfootball; we want everyone to get behind the Kvaerner workforcewhatever happens on Tuesday," he said.It is understood that Kvaerner were told in no uncertain terms bythe Scottish Office that it would be costly for them to shut down.In its home country of Norway, the state picks up a largeproportion of the bill when companies have to close.Both the government and unions are still hopeful buyers can befound, but this may prove easier for Clydebank than for Govan.Political pressure will mount on Labour to prove the Union of 1707can still work for Scotland. If the London-based Ministry of Defencebrings forward the timetable for ordering roll on, roll-off ferries,and if that #250m contract is awarded to Govan, it would be mucheasier to find a buyer.One source said: "It is difficult to buy a yard which has an emptyorder book."One of the leading candidates to purchase the Govan yard isFerguson shipbuilders of Port Glasgow. And they may get it on thecheap. Kvaerner recently sold some of its Norwegian operations forone crown - about 8p. A government source indicated the price forGovan would be "either a penny or a pound."But a senior source at Ferguson - which was once owned by Kvaerner- said the company had not received any approaches from the ScottishOffice regarding a bid. Ferguson would in any case slash theworkforce. The source said: "Govan could only be run as an additionto Port Glasgow - it could not be run at its current size."To be an effective shipyard, you have to invest. Kvaerner is agood facility, but we are a niche market and do not want to harmthat."Kvaerner will announce its restructuring plans to the London StockExchange on Tuesday morning and then publish them on the internet -with the closure of its West of Scotland operations featuring assomething of a footnote.The unions know Kvaerner wants to quit. And they fear that, whenredundancy notices are issued, the most skilled workers will goelsewhere. This would make the factories less viable for potentialbuyers who may be looking for a going concern. Already, Kvaernerhave been bringing training to a standstill and refusing subsidiesfrom government.Kjell Almskog, Kvaerner's president and chief executive, started ameeting with union officials last week with a warning that the grouphad to be "half the size but twice as good", and said it wouldwithdraw from one of its four core areas - almost certainlyshipbuilding. Almskog had been carrying out a review of the groupafter record losses of #150m last year. Almskog said there would be"no sacred cows" in his radical plans.Unions at Govan and Clydbank are getting together to opposeclosure and, if necessary, back the selling process. But one well-placed union source is already pessimistic about the outcome. Hetold the Sunday Herald that he thought the prospect of an MoD orderfor Govan was simply paying lip service during the election campaignto saving the shipyard. He said it was an ominous sign when TonyBlair visited the Yarrow shipyard on the north side of the Clyde sixweeks ago, but bypassed Govan. Another union source said they werelooking to the government and not Kvaerner to save jobs. "We do notwant crocodile tears - we want support. Will the government find abuyer or will we be left to our own devices?"Some fear that Kvaerner will want to kill of Govan's viability,making it easier for them to sell other yards on the continent tocompetitors.The future of Kvaerner's operations could dominate the second weekof the Scottish election campaign, replacing the parties' preparedpropoganda.
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