Four hundred workers at the Alexander Dennis bus manufacturing plant in Scarborough are set to escalate strike action after rejecting a four per cent pay offer.
Four hundred workers employed by the bus manufacturer Alexander Dennis in Scarborough are preparing to escalate their strike action later this month over an ongoing pay dispute.
The industrial action follows the workforce's rejection of a four per cent pay offer from the company. The trade union Unite, which represents the workers, claims that the spending power of their members' wages has fallen significantly, dropping by twenty per cent since 2020 as the cost-of-living crisis has been compounded by years of what the union describes as sub-par pay increases.
According to the union's calculations, the Retail Prices Index rose by approximately 35.1 per cent between August 2021 and May 2026, meaning overall prices increased by about a third over that period. During the same timeframe, Unite states that wages at the Alexander Dennis factory increased by only 15.3 per cent, leaving the workers 19.8 per cent behind the rising cost of living.
Unite general secretary Sharon Graham said:
"These workers have seen their pay plummet in real terms. Enough is enough. Alexander Dennis must come back with a pay offer that matches their hard work and commitment. Strikes will not end until that happens."
The first round of strike action by the Scarborough-based workers took place between the 25th of June and the 1st of July. A second round of strikes is now scheduled to take place from the 16th to the 20th of July. The union has warned that this upcoming action will completely shut down the factory's operations, and further dates will be scheduled if the dispute is not successfully resolved.
Unite regional officer Dan Stephens said:
"Alexander Dennis is entirely responsible for the disruption at its Scarborough factory. It could put forward an acceptable offer but is choosing not to. That is the only way this dispute will end."
In response to the escalation, Alexander Dennis has strongly defended its position, stating that it has made a fair offer in the context of a highly challenging economic environment for the domestic manufacturing sector.
Speaking ahead of the last round of action a spokesperson for Alexander Dennis said:
"Alexander Dennis is one of the top-paying employers in Scarborough and has made a very fair and above-inflation offer of a 4% pay rise. The UK bus manufacturing sector is under intense pressure – costs are rising and half of all new buses now come from overseas. Against this backdrop it is incredibly disappointing that our offer has been rejected. We are committed to working with the union and our team members to bring this matter to a resolution. We do not expect customer deliveries to be affected in the meantime."
The company highlighted that the current UK annual inflation rate, as measured by the Consumer Prices Index, stands at 2.8 per cent, while UK wage growth is 3.6 per cent. Furthermore, Alexander Dennis asserts that its pay rates for vehicle builders and operational team members are already the highest in the industry.
The bus manufacturer also pointed to broader industry challenges, noting that UK manufacturers are facing increasing labour, energy, and other input costs. The company stated that domestic manufacturers are increasingly being undercut by competitors based in Egypt and China, which accounted for 51 per cent of all new zero-emission buses in the UK in 2025.
Alexander Dennis noted that Unite has full knowledge of these severe sector-specific challenges, as the union has been actively involved in lobbying the government for support for UK bus manufacturing and has also participated in the company's Scottish restructuring process.
The company added that it remains fully open to meaningful dialogue with the trade union, but stressed that discussions must be grounded in economic and business reality and firmly focused on the long-term sustainability of the Scarborough site.
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