Economics

Hundreds return at bus firm as pay deal ends strike

About 400 workers in Scarborough began industrial action in June but have now returned, union says.

Hundreds return at bus firm as pay deal ends strike

Workers at Alexander Dennis in Scarborough began industrial action in June

Hundreds of employees at a bus manufacturer have ended strike action after agreeing an above-inflation pay deal.

Around 400 Unite union members at Alexander Dennis in Scarborough walked out in June after turning down management’s offer of a 4% rise. CPI inflation across the UK was 3.1% in the year to August 2026.

The workers have now accepted a 4.5% pay increase, backdated to January, followed by a further 3.5% rise in January 2027, the union said.

A spokesperson for Alexander Dennis said an agreement had been reached that "enables us to resume full manufacturing operations at our Scarborough site and continue to deliver for our customers".

Founded 130 years ago, the company makes buses for Greater Manchester’s Bee Network and for Transport for London.

The firm, which is based in Larbert, Scotland, was also recently given a contract to build more than 200 buses for the Liverpool City Region.

Unite regional officer Dan Stephens said workers were now "focused on getting back to proudly building world-class buses".

A spokesperson for Alexander Dennis said that Prime Minister Andy Burnham and metro mayors had spoken about the importance of the UK bus manufacturing sector.

"It is essential that those ambitions are reflected in procurement decisions that sustain skilled jobs, create more apprenticeships and deliver economic growth across the country," they added.

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