Harland & Wolff jobs at risk following losses

Jobs could be at risk at Belfast's troubled Harland and Wolff shipyard following the announcement of losses of more than stg £…

Jobs could be at risk at Belfast's troubled Harland and Wolff shipyard following the announcement of losses of more than stg £26 million last year, according to its Norwegian parent company, Olsen Energy.

Most of the losses were caused by the cost of cutting the workforce in the yard from 1,500 to 500 during last summer and autumn, said Olsen.

It warned more jobs would have to go if there were any delays in a start date being given for a British Ministry of Defence contract for two roll-on roll-off ferries.

Olsen Energy said it had given Harland and Wolff almost stg£90 million financial support over the years and it now expected the company to sustain itself.

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The shipyard has only a small amount of work at present and while it is searching for new contracts, its future largely hangs on the contract for the two ferries- work on which is not expected to start for some months.

Meanwhile, the yard today put the majority of its employees on short-time working - a 30 hour three day week - because of the lack of work.

It is also preparing to go to the Appeal Court in London in the latest stage of its fight with an American company over a contract for two oil-drill ships.

Global Marine refused to pay the final instalment of stg£23 million for the second ship claiming it was not finished on time or to specification last summer.

The yard disputed the claims and won an arbitration ruling that the money should be paid. However Global Marine went to the High Court and managed to overturn the award. Harland and Wolff says it is confident it can reverse the decision when it takes the case back to the courts in the next few weeks.

PA