Upper Clyde Shipbuilders
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Upper Clyde Shipbuilders (UCS) was a Scottish
shipbuilding Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to befor ...
consortium A consortium (plural: consortia) is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for ...
, created in 1968 as a result of the amalgamation of five major shipbuilders of the
River Clyde The River Clyde ( gd, Abhainn Chluaidh, , sco, Clyde Watter, or ) is a river that flows into the Firth of Clyde in Scotland. It is the ninth-longest river in the United Kingdom, and the third-longest in Scotland. It runs through the major cit ...
. It entered
liquidation Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redistrib ...
, with much controversy, in 1971. That led to a "
work-in A work-in is a form of direct action under which workers whose jobs are under threat resolve to remain in their place of employment and to continue producing, without pay. Their intention is usually to show that their place of work still has long ...
" campaign at the company's
shipyard A shipyard, also called a dockyard or boatyard, is a place where ships are built and repaired. These can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards are sometimes more associated with maintenance a ...
s, involving
shop steward A union representative, union steward, or shop steward is an employee of an organization or company who represents and defends the interests of their fellow employees as a labor union member and official. Rank-and-file members of the union hold ...
s
Jimmy Airlie Jimmy Airlie (10 November 1936, Renfrew – 10 March 1997, Erskine) was a leading Scottish trade unionist. While a shop steward, along with Sammy Gilmore, Sammy Barr and Jimmy Reid he was particularly remembered for his role as chairm ...
and
Jimmy Reid James Reid (9 July 1932 – 10 August 2010) was a Scottish trade union activist, orator, politician and journalist born in Govan, Glasgow. His role as spokesman and one of the leaders in the Upper Clyde Shipbuilders work-in between June 1971 ...
, among others.


Formation

The Company was formed in February 1968 from the amalgamation of five Upper Clyde Shipbuilding firms: Fairfield in
Govan Govan ( ; Cumbric?: ''Gwovan'?''; Scots: ''Gouan''; Scottish Gaelic: ''Baile a' Ghobhainn'') is a district, parish, and former burgh now part of south-west City of Glasgow, Scotland. It is situated west of Glasgow city centre, on the south ba ...
(Govan Division),
Alexander Stephen and Sons Alexander Stephen and Sons Limited, often referred to simply as Alex Stephens or just Stephens, was a Scottish shipbuilding company based in Linthouse, Glasgow, on the River Clyde and, initially, on the east coast of Scotland. History The comp ...
in
Linthouse Linthouse is a neighbourhood in the city of Glasgow, Scotland. It is situated directly south of the River Clyde and lies immediately west of Govan, with other adjacent areas including Shieldhall and the Southern General Hospital to the west, a ...
(Linthouse Division),
Charles Connell and Company Charles Connell and Company was a Scottish shipbuilding company based in Scotstoun in Glasgow on the River Clyde. History The company was founded by Charles Connell (1822-1894) who had served an apprenticeship with Robert Steele and Co befor ...
in Scotstoun (Scotstoun Division) and
John Brown and Company John Brown and Company of Clydebank was a Scottish marine engineering and shipbuilding firm. It built many notable and world-famous ships including , , , , , and the ''Queen Elizabeth 2''. At its height, from 1900 to the 1950s, it was one of ...
at
Clydebank Clydebank ( gd, Bruach Chluaidh) is a town in West Dunbartonshire, Scotland. Situated on the north bank of the River Clyde, it borders the village of Old Kilpatrick (with Bowling, West Dunbartonshire, Bowling and Milton, West Dunbartonshire, Mil ...
(Clydebank Division), as well as an associate subsidiary,
Yarrow Shipbuilders Ltd Yarrow Shipbuilders Limited (YSL), often styled as simply Yarrows, was a major shipbuilding firm based in the Scotstoun district of Glasgow on the River Clyde. It is now part of BAE Systems Surface Ships, owned by BAE Systems, which has also op ...
, in which UCS held a controlling stake of 51%. The consolidation was a result of the ''Geddes Report'', published in 1966, and the subsequent Shipbuilding Industry Act 1967 (sponsored by the
Minister of Technology The Ministry of Technology was a department of the government of the United Kingdom, sometimes abbreviated as "MinTech". The Ministry of Technology was established by the incoming government of Harold Wilson in October 1964 as part of Wilson's am ...
, then Anthony Wedgwood Benn) which recommended rationalisation and
horizontal integration Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a co ...
of shipbuilding in the United Kingdom into large regional groups, aided with grants from the state Shipbuilding Industry Board, in order to achieve
economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
and better compete in the market for increasingly large
merchant vessel A merchant ship, merchant vessel, trading vessel, or merchantman is a watercraft that transports cargo or carries passengers for hire. This is in contrast to pleasure craft, which are used for personal recreation, and naval ships, which are us ...
s like
VLCC An oil tanker, also known as a petroleum tanker, is a ship designed for the bulk transport of oil or its products. There are two basic types of oil tankers: crude tankers and product tankers. Crude tankers move large quantities of unrefined crud ...
s. The creation of these groupings included
Scott Lithgow Scott Lithgow, Limited was a Scottish shipbuilding company. History The Company was formed in 1967 by the merger of Scotts Shipbuilding and Engineering Company and Lithgows. Scott Lithgow was based in Port Glasgow and Greenock on the lower Clyde ...
on the
Lower Clyde The Firth of Clyde is the mouth of the River Clyde. It is located on the west coast of Scotland and constitutes the deepest coastal waters in the British Isles (it is 164 metres deep at its deepest). The firth is sheltered from the Atlantic ...
,
Swan Hunter Swan Hunter, formerly known as Swan Hunter & Wigham Richardson, is a shipbuilding design, engineering, and management company, based in Wallsend, Tyne and Wear, England. At its apex, the company represented the combined forces of three powe ...
on
Tyneside Tyneside is a built-up area across the banks of the River Tyne in northern England. Residents of the area are commonly referred to as Geordies. The whole area is surrounded by the North East Green Belt. The population of Tyneside as published i ...
and Robb Caledon on the east coast of Scotland. The government had a 48.4% minority holding in the consortium and provided a £5.5m interest-free government loan over the first three years. UCS had a combined order book at the time worth £87m.


Collapse of UCS

In June 1971, the loss-making Upper Clyde Shipbuilders went into receivership (only one yard of the five,
Yarrow Shipbuilders Ltd Yarrow Shipbuilders Limited (YSL), often styled as simply Yarrows, was a major shipbuilding firm based in the Scotstoun district of Glasgow on the River Clyde. It is now part of BAE Systems Surface Ships, owned by BAE Systems, which has also op ...
, remained profitable but had left the joint venture in April 1970). In February 1971, in the wake of the emergency nationalisation of
Rolls-Royce Limited Rolls-Royce was a British luxury car and later an aero-engine manufacturing business established in 1904 in Manchester by the partnership of Charles Rolls and Henry Royce. Building on Royce's good reputation established with his cranes, they ...
, the then
Conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization i ...
government under
Edward Heath Sir Edward Richard George Heath (9 July 191617 July 2005), often known as Ted Heath, was a British politician who served as Prime Minister of the United Kingdom from 1970 to 1974 and Leader of the Conservative Party (UK), Leader of the Conserv ...
and the
Secretary of State for Trade and Industry The secretary of state for business, energy and industrial strategy, is a secretary of state in the Government of the United Kingdom, with responsibility for the Department for Business, Energy and Industrial Strategy. The incumbent is a memb ...
, John Davies, announced a policy that refused further state-support for "lame duck" industries, which led to a crisis of confidence amongst UCS
creditors A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property ...
and resulted in severe
cash flow A cash flow is a real or virtual movement of money: *a cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected ...
problems for the company. After the government refused UCS a £6m
working capital Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is consi ...
loan as a
lender of last resort A lender of last resort (LOLR) is the institution in a financial system that acts as the provider of liquidity to a financial institution which finds itself unable to obtain sufficient liquidity in the interbank lending market when other facil ...
, the company was forced to enter liquidation although the yards had a full order book and a forecasted profit in 1972.


Work-in

After the company's collapse, rather than striking, unions representing the shipyard's workers decided to conduct a "
work-in A work-in is a form of direct action under which workers whose jobs are under threat resolve to remain in their place of employment and to continue producing, without pay. Their intention is usually to show that their place of work still has long ...
" to complete orders already in place. The work-in was led by a group of young shop stewards, including
Jimmy Reid James Reid (9 July 1932 – 10 August 2010) was a Scottish trade union activist, orator, politician and journalist born in Govan, Glasgow. His role as spokesman and one of the leaders in the Upper Clyde Shipbuilders work-in between June 1971 ...
,
Jimmy Airlie Jimmy Airlie (10 November 1936, Renfrew – 10 March 1997, Erskine) was a leading Scottish trade unionist. While a shop steward, along with Sammy Gilmore, Sammy Barr and Jimmy Reid he was particularly remembered for his role as chairm ...
,
Sammy Barr Samuel Alexander Barr (20 December 1931 – 7 May 2012) was a British shipyard worker, trade unionist, and Upper Clyde Shipbuilders (UCS) work-in veteran. Barr was an "inspiring speaker" and organiser who was a "widely respected shop steward ...
and
Sammy Gilmore Sammy Gilmore (8 October 1939 – 8 October 2011) was a shipyard electrician and trade union organiser, known for being one of the leaders of the Upper Clyde Shipbuilders' work-in in 1972. Life Sammy was born to Maurice & Mary Gilmore. He h ...
. Reid wanted to ensure the workers projected the best image of the yard workers he possibly could, and he insisted on tight discipline. He addressed the workers at the yards, where he instructed them that there should be "no hooliganism, no vandalism and no bevvying rinking.


Work-in support

The shipbuilders' tactics worked, and public sympathy in the
Glasgow Glasgow ( ; sco, Glesca or ; gd, Glaschu ) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated popul ...
area and beyond was on the side of the workers who took part. That was backed up with demonstrations in Glasgow, one of which was attended by around 80,000 marchers. At one demonstration, on
Glasgow Green Glasgow Green is a park in the east end of Glasgow, Scotland, on the north bank of the River Clyde. Established in the 15th century, it is the oldest park in the city. It connects to the south via the St Andrew's Suspension Bridge. History In ...
,
Tony Benn Anthony Neil Wedgwood Benn (3 April 1925 – 14 March 2014), known between 1960 and 1963 as Viscount Stansgate, was a British politician, writer and diarist who served as a Cabinet of the United Kingdom, Cabinet minister in the 1960s and 1970s. ...
addressed those in attendance, and
Matt McGinn Matthew McGinn (17 January 1928 – 5 January 1977) was a Scottish folk singer-songwriter, actor, author and poet. Born in Glasgow in 1928, McGinn was a prolific songwriter and is recognised as an influential figure in the British folk music ...
and
Billy Connolly Sir William Connolly (born 24 November 1942) is a Scottish actor, retired comedian, artist, writer, musician, and presenter. He is sometimes known, especially in his homeland, by the Scots nickname the Big Yin ("the Big One"). Known for his ...
(both former shipyard workers) offered entertainment to the gathered crowd. The campaign was also well-backed financially, and at one meeting for the campaign, Jimmy Reid was able to announce that the campaign had received a £5,000 contribution from
John Lennon John Winston Ono Lennon (born John Winston Lennon; 9 October 19408 December 1980) was an English singer, songwriter, musician and peace activist who achieved worldwide fame as founder, co-songwriter, co-lead vocalist and rhythm guitarist of ...
, to which an attendee replied "but
Lenin Vladimir Ilyich Ulyanov. ( 1870 – 21 January 1924), better known as Vladimir Lenin,. was a Russian revolutionary, politician, and political theorist. He served as the first and founding head of government of Soviet Russia from 1917 to 19 ...
's deid!" (dead).


Analysis of the work-in

The Thatcher Conservative government would be more far-reaching in its attempts to remove state involvement in industrial affairs.


Restructuring and aftermath

In February 1972, the Conservative government relented to the demands of the workers and restructured the yards around two new companies:
Govan Shipbuilders Govan Shipbuilders Ltd (GSL) was a British shipbuilding company based on the River Clyde at Glasgow in Scotland. It operated the former Fairfield Shipyard and took its name from the Govan area in which it was located. History The company wa ...
was established (formerly Fairfields), along with its subsidiary
Scotstoun Marine Ltd {{more citations needed, date=May 2008 Scotstoun Marine Ltd was a shipbuilding company in Glasgow, Scotland, on the River Clyde, formed in 1972 to operate the former shipyard of Charles Connell and Company following the collapse of Upper Clyde S ...
(formerly Connells).
Yarrow Shipbuilders Yarrow Shipbuilders Limited (YSL), often styled as simply Yarrows, was a major shipbuilding firm based in the Scotstoun district of Glasgow on the River Clyde. It is now part of BAE Systems Surface Ships, owned by BAE Systems, which has also o ...
had already withdrawn from UCS in April 1970 and regained its status as an independent company (until 1977, when it was nationalised as part of
British Shipbuilders British Shipbuilders (BS) was a public corporation that owned and managed the shipbuilding industry in Great Britain from 1977 through the 1980s. Its head office was at Benton House in Newcastle upon Tyne, England. History The corporation was ...
, along with Govan Shipbuilders). A fourth yard, at Clydebank (formerly John Brown), was sold to
Marathon Oil Marathon Oil Corporation is an American company engaged in hydrocarbon exploration incorporated in Ohio and headquartered in the Marathon Oil Tower in Houston, Texas. A direct descendant of Standard Oil, it also runs international gas operations ...
as an oil-rig fabrication yard; which eventually closed in 2001. In 1999, two major shipyards on the Upper Clyde (the former Yarrow and Fairfields yards) were acquired by the defence contractor
BAE Systems BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...
and became part of
BAE Systems Surface Ships BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...
.


References


External links


The Clyde-built ships database - lists over 22,000 ships built on the Clyde
{{Authority control Defunct shipbuilding companies of Scotland Companies based in Glasgow History of Glasgow British companies established in 1968 Manufacturing companies established in 1968 Manufacturing companies disestablished in 1972 1968 establishments in Scotland 1972 disestablishments in Scotland Defunct companies of Scotland British companies disestablished in 1972 British Shipbuilders