Update to CalMac Members 4th September 2024

Update to CalMac Members 4^th September 2024

Dear Colleague

I write to update CalMac Ferries members on recent industrial and political developments on the CHFS3 contract and other issues relating to the immediate position of the lifeline services that RMT members are working hard to provide.

Disappointingly, CalMac CEO Duncan Mackinson cancelled a meeting with RMT Lead Officer, Gordon Martin and the CalMac Convenor, Brian Reynolds. This is the second time that Mr Mackinson has cancelled at short notice a meeting with your trade union. Mr Mackinson is now seeking to meet your union as part of annual CalMac pay talks. 

I can assure our CalMac members that RMT will go into those negotiations demanding an above inflation pay award, to recognise the outstanding service that seafarers and port side staff have continued to provide in increasingly difficult circumstances. We will not allow the pay or terms and conditions of CalMac staff to be caught up in the Scottish Government’s cuts agenda.

RMT and Nautilus have also written to the employer to raise concern over plans to second seafarers from CalMac to Ferguson Marine for final delivery of the Glen Sannox. This is a highly unusual approach to vessel delivery. RMT members at the Isle of Man Steam Packet were not seconded to the South Korean shipyard which built the new Manxman ro-pax ferry and neither were CalMac staff seconded to the Flensburger shipyard in Germany that built and delivered the Loch Seaforth in 2015 (18 months late) the last new build large ferry procured for CalMac.

On direct award of CHFS3, Transport Scotland updated the union last week. Although the work is being carried out by private sector consultants, there is no legal impediment to a Teckal compliant award, as your union advised the Scottish Government in 2015. 

The Scottish Government also has to submit a case for direct award to the Competition and Markets Authority (CMA) by October, under legislation introduced by the Tory Government in 2022. This is the biggest remaining obstacle to the long term direct award of CHFS3 to CalMac, which is the preferred policy of the Cabinet Secretary for Transport, Fiona Hyslop MSP and we do not see this as a serious threat as the CMA does not have the power of veto over the SNP Government’s plans. 

The Scottish Government has extended the current CHFS contract with CalMac to 30 September 2025, which is ample time to work with trade unions and others to specify and directly award the CHFS3 contract to CalMac. 

Regrettably, the Scottish Government has decided not to directly award the design and build contract for seven vessels to the public sector company Ferguson Marine. This contract is the first phase of the Small Vessel Replacement Programme. Annex 1 below sets out which ships and routes are being replace, nominally by 2026. The Scottish Government has received twelve expressions of interest and will issue an invitation to tender for the small vessels contract next month, when the number of bidders is likely to reduce. Harbour upgrades will also be required as part of this programme. We are working to ensure that this £175m contract delivers jobs and skills for CalMac seafarers and harbour staff.

After Transport Scotland’s update, I wrote to the Cabinet Secretary, asking Fiona Hyslop to hold a multi-stakeholder meeting of trade unions and passenger groups, in part to make sure that direct award of CHFS3 is fully supported by all stakeholder groups.

Fiona Hyslop gave a ministerial statement on the CHFS3 contract yesterday, containing the following main points

• MV Caledonian Isles is due to return on the Arran run later this month;
• CalMac’s new Enhancement and Change Plan is in place;
• the revised business case for the Ardrossan Harbour Upgrade is imminent
• delays to the Islay ships from Cemre in Turkey are due to the global supply chain; 
• further extension of the time charter of the MV Alfred from Pentland Ferries to February 2025, at least by which time ‘new tonnage’ will have been delivered

Whilst the Cabinet Secretary praised CalMac and NorthLink crews’ performance, Fiona Hyslop also said that “difficult decisions will be needed around all aspects of ferry services.” It is clear that from recent meetings your union has attended, including with the First Minister, John Swinney that public sector austerity is being threatened on staff and passengers across the public transport network in Scotland. 

Although none of the £500m of cuts announced yesterday by the Scottish Government fall on public ferry contracts, the Scottish Government had already reduced the 2024-25 budget for ferries and infrastructure by 33%. These harsh decisions are an inevitable result of the eye-watering overspend on the Glen Sannox and the Glen Rosa but your union will not allow this contagion to spread to your pay or terms and conditions of employment.

I can categorically assure all RMT members in CalMac and across the Scottish shipping industry that we will not allow the Scottish Government to cut pay or erode the terms and conditions we have all fought hard to win. 

You will be kept fully updated with all further developments.

Yours sincerely

 

Mick Lynch

General Secretary

 

Annex 1

Small Vessel Replacement Programme 

Vessels and Routes in the Phase 1 Design and Build Contract

1. MV Loch Dunvegan Colintraive – Rhubodach 
2. MV Loch Tarbert Sconser – Raasay 
3. MV Loch Buie Iona – Fionnphort 
4. MV Loch Riddon Tarbert – Portavadie 
5. MV Loch Fyne Lochaline – Fishnish 
6. MV Loch Linnhe Tobermory – Kilchoan  
7. MV Loch Ranza Tayinloan – Gigha 

Average age of vessels: 34 years