Lay-offs at Belfast shipyard begin

Work has run out at the huge Belfast yard

The Belfast shipyard Harland and Wolff has begun the process of telling half of its workforce exactly who is to lose their jobs.

The yard's owners announced on 21 September that 613 people would be laid off as part of a plan to keep the troubled business solvent, but the workers had been waiting to find who would be affected.

Managers have spent the past two weeks in negotiations with unions about redundancy packages.

On Tuesday staff were being told individually if they are to be among those to leave.

Workers chosen for redundancy have a right of appeal but it is thought most will leave by the end of the week.

There will be 350 shop floor layoffs and 260 from among staff and management.

Just under 600 workers will remain at the yard as part of a plan to restructure Harland & Wolff.

Meanwhile, it has emerged that the US oil company Global Marine is seeking to appeal an arbitration ruling that awarded £22m to the shipyard.

'Delay and damage'

The row centres on the final payment due on an oil drilling vessel. It could now be several more weeks before this dispute is finally settled.

The shipyard says the appeal is simply an attempt to cause as much delay and damage as possible, a claim strenuously denied by Global Marine.

The Confederation of Shipbuilding and Engineering Unions has said the layoffs were a devastating blow to workers across the company, from its management down.

The mood among the workforce had been very low since June, when spirits were temporarily raised by the announcement that the company was about to secure an order for four ferries.

The order has still not been confirmed and the company does not have enough short-term work to sustain its current workforce.

The unions have said they fear there could be further redundancies if new orders can not be won.

Announcing the redundancies, parent company, Fred Olsen Energy, said they intended to restructure the company so that shipbuilding could be sustained as a viable business in Belfast.

H&W chief executive Brynjulv Mugaas said the company realised the redundancies would be painful, but he said they were necessary if H&W was to regain market confidence and win orders.

He said the company hoped that there would not have to be further redundancies but that would depend on securing substantial orders and on a major improvement in productivity.