Alstom has told Derby City Council that after months of talks with government, they must now plan to end the production of rolling stock within the city.
The company has announced it has started a consultation which will involve potential redundancies of 550 Alstom permanent employees. 780 contractors are also at potential risk.
An Alstom spokesperson said: “Alstom UK has been working with government for the last six months with the joint objective of securing a sustainable future for our rolling stock factory at Derby Litchurch Lane, which has no confirmed workload beyond the first quarter of 2024.
“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. We will fully support our dedicated colleagues during this exceptionally difficult time.
“The UK remains one of Alstom’s most important global markets and we will continue to operate 36 sites throughout the country across our Rolling Stock, Services, and Digital and Integrated Systems businesses. 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.”
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.”
Leader of Derby City Council, Councillor 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 and will be starting a redundancy consultation affecting Derby manufacturing staff, coinciding with the end of current projects.
“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. The rail sector is immensely important to the city, and was recognised earlier this year with Derby being named the home for the new Great British Railways headquarters. We stand with Alstom and their workers during this disappointing time and continue to support wherever we can.”
Unite, the UK’s leading union, is calling for the creation of a joint taskforce to secure the long-term future of the Alstom train manufacturing site in Litchchurch Lane, Derby.
Unite general secretary Sharon Graham said: “There is absolutely no justification for the proposed job losses. It is madness that there is a huge amount of work that Alstom could and should be bidding for but the government has not got around to tendering for it.
“The government and Alstom should both be bending over backwards to keep hold of these highly skilled workers and this strategically vital and unique site. Unite will leave no stone unturned in its campaign to secure these jobs.”
