Vital talks are set to begin between a towage firm from Orkney and transport union bosses over the future of more than half of the workforce at the company.

As many as 20 of the 40 employees at the Orkney Towage Company could lose their jobs.

It comes after it was revealed last month that there has been a significant downturn in tanker traffic to the island’s Flotta oil terminal. Shipments of crude oil from the Foinaven field to the west of Shetland are no longer shipped to Scapa Flow but directly to ports in northern Europe.

Yesterday, the managing director of the Orkney Towage Company, Captain Nigel Mills, contacted Tommy Campbell, regional organiser of the T &G branch of the Unite union.

In a letter to Mr Campbell, he said: “As a consequence of the fall in trade the company has had to consider the current staffing levels and terms and conditions which apply to your members.”

Mr Campbell last night responded with surprise at news of the possible redundancies. He said: “It is a shock to learn they are planning to make people redundant.

“We will now meet with the company and staff to discuss the redundancies.”

source: this is north scotland