CRUCIAL talks are under way aimed at preserving the future of engineering firm BiFab.

First Minister Nicola Sturgeon – who returned early from a UN climate change conference in order to help resolve the issue – and Business Minister Paul Wheelhouse are in discussion with offshore contractor Seaway Heavy Lifting (SHL).

Burntisland Fabrications, also known as BiFab, are in dispute with SHL, as well as Scottish and Southern Energy (SSE), over unpaid bills. The GMB and Unite unions say that SHL have reneged on a payment for an already completed wind farm, part of a project involving SSE.

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SHL insists BiFab has been paid on time for the work carried out.

The dispute has caused BiFab cash flow problems which could lead to the business going into administration.

BiFab has a combined workforce of 1400 contractors and subcontractors on their sites in Methil in Fife and Arnish on the Isle of Lewis, and hundreds held a demonstration outside the Scottish Parliament in one of the biggest of its kind in Scotland for a number of years.

Many employees have continued working at the yards without pay.

Yesterday morning Economy Secretary Keith Brown said ministers had a “laser-like focus” on achieving a successful resolution and that “very serious progress” was being made.

He said that discussions had been taking place every day this week, since it was reported that BiFab were on the verge of calling in administrators.

“The most important thing we can do, which I think has been constructive so far, is to get the parties round the table,” said Brown.

“The parties weren’t speaking, there wasn’t the prospect of a resolution. We now have very serious progress being made towards a resolution and that’s with the active involvement of the Scottish Government.”

BiFab makes equipment for the oil and gas industry and the renewable energy sector, and unpaid staff are continuing to work in the hope that the dispute will be resolved.

“There’s one particular payment which has not been paid and the two different parties to that payment – on the one hand BiFab on the other hand Seaway Heavy Lifting – have different views on the nature of that payment and when it should be made,” continued Brown.

“We’ve brought the parties round the table on a number of occasions this week, and we’ll be doing it again today with the active involvement of the First Minister, who’s come back early to make sure that she is involved in this process.”

An SSE spokesman said: “SSE continues to engage closely with BiFab’s management, SHL, the Scottish Government and other stakeholders to find a sustainable solution for the company.”