Alstom: Train firm warns potential contracts might not save jobs

The firm's factory in Derby dates back to the Victorian era

Workers at a factory have been warned potential new contracts might not arrive in time to save their jobs.

Earlier this month train maker Alstom said hundreds of staff could be laid off because of a gap in its orders.

The government revealed it was pursuing a number of deals to try to secure the Derby company.

However bosses have written to staff warning those contracts might not help the firm in the short-term as no time frame has been set for signing them.

Alstom, which has 2,000 workers at its Litchurch Lane factory, is struggling because current orders only run until early 2024 and contracts to build trains for HS2 have been pushed back until 2026.

The Department for Transport (DfT) subsequently revealed there were currently "live procurements in the market" being run by Northern, Chiltern and Southeastern open for all manufacturers, including Alstom.

'No confirmed dates'

However, the Local Democracy Reporting Service has seen a letter from Alstom managers that states the current opportunities do not guarantee "that any orders will be placed" or offer any time frame for any potential orders.

The letter said: "There are several upcoming opportunities that we have been aware of for the past three years.

"However, it has been made clear to manufacturers, both by the Department for Transport and the relevant train operating companies, that there is no guarantee that any orders will be placed.

"Importantly, the train operating companies have not yet invited bids from manufacturers - and there is no confirmed timeline for such bids to be submitted. There is also no confirmed date for the contract award.

"In summary, the Department for Transport and train operating companies are running a 'market sounding' exercise with no timelines or deadlines on which manufacturers and the wider UK rail supply sector can plan for over the short-medium term."

Derby City Council leader Baggy Shanker has described the situation as "urgent".

"Alstom is not asking for a bail-out, they are not asking for guaranteed orders to come forward but what they are looking at is asking the government to bring forward tenders," he said.

"They need to be brought forward with a sense of urgency."

A DfT spokesperson previously said it was seeking a "sustainable future for the factory".