Employees working for marine engineering firm BiFab have agreed to continue working despite no guarantees they will be paid.

Around 1,400 staff at BiFab yards in Burntisland and Methil, in Fife, and Arnish in Lewis, are staging a 'work-in' to give the company time to sort out its current financial crisis.

With the firm filing notice of administration earlier this week, trade unions have been informed this is a direct result of main Dutch-owned contractor, Seaway Heavy Lifting (SHL), not paying BiFab 'millions of pounds' for work already completed.

Last year, the company secured a £100 million contract from SHL to manufacture 26 turbine jackets as part of SSE's £2.6 billion Beatrice Offshore Windfarm Ltd (Bowl) project in the Outer Moray Firth.

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However, a dispute over payments has thrown BiFab into a cash-flow crisis.

Unite Scottish Secretary Pat Rafferty said: "As far as we can see BiFab is being held to ransome by the main contractor. It beggars belief that 1400 jobs are now in jeopardy over who owes how many millions of pounds to whom. The workers have taken a courageous stand to save these jobs. The Scottish Government must match that commitment by doing whatever it takes to safeguard the future of the yards."

Gary Smith, GMB Scotland Secretary, said: "Everyone with an interest in these workers, their communities and the welfare of the Scottish economy must pull together now and the Scottish Government must lead this effort.

"This is a viable workforce and these are viable yards - important strategic assets - and they stand ready and able to help deliver the future of Scottish manufacturing. Letting these workers and their communities go under is not an option."

Martin Adam Managing Director of BiFab, said: "We are very disappointed that we have found ourselves in the current position which has arisen as a result of a challenging situation in respect of our ongoing contracts which have been providing much needed employment locally in Scotland.

"We are seeking a rapid solution with our key stakeholders and the Scottish Executive to our current cash flow position and are hopeful that this can be achieved quickly to secure the future of the business and the 1,400 strong workforce."

(LM/CD)