Minister to meet shipyard owners

Critical time for Harland and Wolff

Northern Ireland's trade and industry minster has said he plans to discuss the crisis at Belfast shipyard Harland and Wolff with its owners at the weekend.

Sir Reg Empey cut short a trade promotion mission to the United States after management warned the future of the yard was at risk because of a cash crisis and an empty order book.

On Thursday H&W management said they feared moves to rescue the shipyard would involve substantial job losses.

Speaking to BBC Radio Ulster, Sir Reg said workers at the yard had not been given any clarification about where they stood.

Reg Empey: Concern for H&W workers

"My concern is that a large number of families are sitting at home this weekend not knowing if they are going to have a wage packet in a week or two," he said.

A delegation from Belfast City Council led by the Belfast Lord Mayor Sammy Wilson including Ulster Unionist, Alliance and Democratic Unionist Party councillors, met senior management from H&W on Friday afternoon to discuss the crisis.

After the meeting Mr Wilson said the outlook for the yard's workers was bleak.

He said H&W is "still fighting with its parent company" to get as much support for as long as possible.

"But it is very likely that when the announcement is made next week there are going to be redundancies," he said.

Ongoing problems

H&W has been in serious difficulties for months, but has now found itself in a critical situation.

In a statement on Thursday, the company said it was considering a number of options to remedy its financial difficulties.

But it said any proposal would inevitably involve substantial job losses at the yard.

The statement came as the yard's parent company, Olsen Energy, were due to hold a board meeting in Norway amid fears of further redundancies at the crisis-hit yard.

'Alternatives'

The company said the process to decide on "the way forward" would be concluded during next week.

The "absence of money on completed orders" and the "uncertain orderbook position" had placed the future of the company at risk, the statement added.

"The management and board of H&W are addressing a number of alternatives in order to create a new opportunity for the company to establish a viable offshore and shipbuilding future for the yard.

"Given the current circumstances, any proposal will inevitably involve a substantial reduction in employees."

The future of the yard was discussed on Monday night by union officials and the company's major shareholder, Norwegian shipping magnate Fred Olsen.

H&W has a workforce of about 1,250, a wage bill of about £2.5m a month, and recently has been kept afloat by Olsen Energy.

Two months ago, 280 redundancy notices were issued at the yard because of the unhealthy state of its order book.

Ready for delivery

But it is hoped arbitration hearings could have a bearing on the yard's future.

Two weeks ago, a court allowed the yard's US customer, Global Marine, which had been at the centre of a major dispute, to take away a drill ship without making a final payment of £23m.

H&W had said that the vessel was ready for delivery, but Global Marine refused to accept the ship and said it was not completed to their satisfaction.

The two companies are also involved in an ongoing row over a contract involving nearly £100m.

The dispute is to be settled by arbitration in a few weeks, but in the meantime the yard is running out of money.

The shipyard is attempting to finalise a major new order, but this has been slow to materialise.