Alstom: Train manufacturer puts 1,300 jobs at risk in Derby

Alstom's Litchurch Lane factory in Derby has no confirmed workload beyond the first quarter of 2024

More than 1,300 jobs have been put at risk at the UK's largest rail assembly factory.

Alstom is consulting on job losses at its Litchurch Lane site in Derby, which has no confirmed workload beyond the first quarter of 2024.

Work on trains for HS2 is scheduled to start at the plant in late 2026, but there is a gap in orders from early next year.

The BBC understands 550 permanent jobs and 780 temporary jobs are at risk.

An Alstom spokesperson said the company had been working with the government over the past six months in a bid to secure a "sustainable future" for the factory.

"No committed way forward has yet been found and therefore it is with deep regret that we must now begin to plan for a significant reduction in activity at Derby by entering a period of collective consultation on potential redundancies at Litchurch Lane," they said.

"We will fully support our dedicated colleagues during this exceptionally difficult time.

"We look forward to fulfilling our commitments on HS2 and successfully competing for rolling stock opportunities across the UK in the future.

"We remain open-minded as to the future of non-production functions located at Litchurch Lane and to potential future alternative uses for the Derby site.

"We will begin an extensive review of options, and will fully involve our stakeholders in this process."

Council leader Baggy Shanker said the authority "stands with" Alstom workers

Derby City Council leader Baggy Shanker said: "We've been informed by Alstom this morning that after months of talks with government, they must now plan to end the production of rolling stock within the city.

"The Litchurch Lane factory site is a unique asset for Derby and the UK and we understand the impact these supply chain job losses will have on our residents and the wider region.

"We've been working closely with Alstom, Unite and senior government officials to explore potential resolutions to the current situation since the announcement of possible job cuts back in September and we're saddened to hear that a solution has not yet been possible.

"Minsters really need to commit and focus on this vital industrial sector. To date I'm disappointed that no minister has agreed to speak to us on this matter."

Margaret Beckett, Labour MP for Derby South, said she was "desperately disappointed" by the news.

"Everybody has been trying for weeks and months to get the government to realise how difficult the situation is," she said.

"The prime minister talks about making decisions for the long-term, but that's precisely what they are not doing. There isn't even any work for which Alstom can compete. It's very bad news."

Amanda Solloway, Conservative MP for Derby North, said: "I know this announcement will be very concerning for constituents whose jobs are in scope and I have been reassured that as part of the cross-government taskforce set up by the Secretary of State for Transport, Mark Harper, both the Department for Business and Trade and the Department for Work and Pensions will be supporting employees who need new employment opportunities.

"I know the secretary of state and his team have been engaged in good faith, thorough discussions with the company exploring ways to maintain the capacity of the site's production line."

The firm was relying on large orders to supply HS2 but these have been delayed, along with the wider project

Paresh Patel, from the union Unite, told the BBC the announcement being made so close to Christmas was "an absolute disgrace".

"It's massive. This site has been here and has been part of this community for the past 180-odd years. It's a dedicated, skilled workforce," he said.

"The stark reality is that if the government doesn't get its act together... there is a real danger that the workforce will dwindle and at some point in the future we may not be talking about Alstom or rail manufacturing in the way we are today.

"[The] government have just sat on their hands and have refused to fully and properly come to an arrangement that would potentially not only save the jobs that we're talking about today, but actually future-proof this site for rail manufacturing."

A Department for Transport spokesperson said: "Rail manufacturing is an important part of the UK economy and we will work closely with Alstom as it continues to deliver its contractual commitments, as we do with all rolling stock manufacturers.

"While this is a commercial matter for the company, we have already set up a dedicated cross-government taskforce to properly support workers at Alstom during what will be a concerning time."

At the scene

By Matt Weigold, BBC Radio Derby reporter

Looking on to the site, it seems like business as usual.

The car park is full, forklifts are whizzing through, parts are being delivered and a new fence is being built.

Inside, it sounds like a busy day, with a flustered member of staff telling me they have many meetings, including with unions, this morning.

It's been difficult to speak to members of staff leaving their cars for a day's work.

The few that have left for an early dinner haven't been willing to speak, looking quite solemn as the inevitable looks to be happening.

I spoke to an employee of Paintbox - a supplier of advanced paint solutions - visiting the Alstom site, who told me he had concerns for his own employment with rumours of job losses there.

He said work was drying up "from March next year", suggesting this could be an industry-wide issue not just affecting Alstom.

The news has prompted concern from local companies that form part of the factory's supply chain.

Malcolm Prentice, who runs Swadlincote-based firm MTMS, said: "There's a vast number of businesses round Derby that supply every item that's needed for the construction of the trains and they're going to suffer.

"We're going to find a lot of businesses round Derby will now go to the wall. They won't be able to wait for the next order and there's going to be a lot more job losses.

"You can double it and keep going."

Sim Harris, managing editor of Rail News, said he feared the number of job losses across Derbyshire and the East Midlands could be higher than the current number.

"The cancellation of HS2 north of the West Midlands to Crewe and Manchester certainly is an issue because the eventual fleet will now inevitably be smaller," he said.

"And the doubt over the size of the fleet will be reducing future income for Litchurch Lane."