Friday 7th December 2012

Disabled workers locally once again face uncertainty and crisis as Remploy said yesterday that it intends to remove 18 of its factories and the CCTV business out of Government control.

Union bosses say that this would mean that over 600 disabled workers face the fear of being made redundant and have now urged the Government to think about alternatives, which it says are a possibility.

Chesterfield was one of 9 factories that were left in commercial process, as reported in July, with 64 jobs saved but colleagues in Sheffield may not fare so well, and could face a worrying festive period.

A statement released by Remploy yesterday reads as follows:

In March 2012, the Remploy Board proposed a series of changes to its operations in response to the Government's decision to implement the Sayce recommendations.

These proposals followed the Government's acceptance of the findings of the Sayce Review, which concluded that the funding currently spent on Remploy could support many thousands more disabled people into employment if it was spent differently.

The Sayce Review proposed that such funding could be used to maximise employment for disabled people through individual support rather than subsidising specific organisations like Remploy.

Stage one of the implementation of the Sayce recommendations and a reduction in funding resulted in the Company's decision to close 36 factories which the Remploy Board considered could not be sustainable without continued Government subsidy.

A commercial process was launched with the aim of transferring as many factories or business as possible to alternative ownership, thereby reducing the number of job losses amongst employees employed in Stage One factories.

Remploy is in continuing negotiations with preferred bidders for two of the Stage One factory businesses with a view to securing such transfers.

As set out in March 2012, Remploy has been working closely with the Department for Work and Pensions (DWP) and independent business analysts KPMG to explore in detail whether the remaining factory based businesses (Automotive, Automotive Textiles, E-Cycle, Frontline, Furniture, Marine and Packaging), CCTV business and Employment Services could viably exit government control and if so, how this could be best achieved.

The Minister for Disabled People informed the House of Commons today that the exit of Stage Two factories and the CCTV business should proceed in line with the Sayce recommendations, and that these businesses should be freed from Government control wherever possible.

Further work is being undertaken on Employment Services and a separate announcement will be made on this in the New Year.

Remploy and its advisors have considered the viability of these businesses and how these remaining factory businesses might move out of Government control.

Following this work, the Remploy Board has confirmed that the recommended approach is as follows:

1. The Automotive business operating from factories in Coventry, Birmingham and Derby is a viable business with a strong and established customer base. It has the potential to move out of Government control as a going concern. Remploy will now move to market this business. Remploy does not propose to make any of the employees employed in this business redundant.
   
   
2. The Automotive Textiles operation at Huddersfield is not commercially viable and the factory there is proposed for closure. All staff in this business are now at risk of redundancy.
   
   
3. The Furniture business based in Neath, Sheffield and Blackburn has the potential to be commercially viable but currently makes significant losses. To achieve commercial viability it is likely that the business would require significant restructuring and downsizing of its operations. Remploy will market this business as a prospective going concern but, recognising that the current trading position of the business may ultimately result in no viable bids being received and that there may therefore be consequential redundancies and factory closures. All staff in this business are now at risk of redundancy.
   
   
4. The Marine Textiles business (based at Leven and Cowdenbeath) has an established market position and might attract commercial interest. Remploy Management will discuss any potential opportunities for a commercial exit with its current distributor and any other parties who express an interest. However the business currently makes significant losses and is not saleable currently as a going concern. The employees of the Marine Textiles business are therefore at risk of redundancy.
   
   
5. The CCTV business has the potential to become a viable business or series of businesses and successfully move out of Government control. Remploy will now discuss with the 27 organisations who have let contracts to Remploy their intentions and the opportunity to market this business and its 27 contracts as a going concern. If the business can be sold it may result in potential TUPE transfers. In the event that it cannot be sold compulsory redundancies will be made and all employees in the CCTV business are therefore at risk of redundancy.
   
   
6. In addition to Automotive Textiles, 3 other Remploy businesses are not commercially viable or have any realistic prospect of being sold as going concerns. These are E-Cycle (based at Porth and Heywood), Frontline Textiles (based at Dundee, Stirling and Clydebank) and Packaging (based at Norwich, Portsmouth, Burnley and Sunderland). These factories are now proposed for closure with all the staff working there and at the associated Business Offices at risk of redundancy.

As a means of reducing the number of potential job losses Remploy will commence a commercial process and invite expressions of interest from any individuals or organisations who would like to buy all or parts of these businesses or sites proposed for closure, or the assets associated with them.

As a result of these proposals a total of 875 employees, including 682 disabled employees in the Automotive Textiles, E-Cycle, Frontline Textiles, Furniture, Marine Textiles, Packaging and CCTV businesses are being placed at risk of compulsory redundancy.

No employees in the Automotive or Employment Services businesses are at risk of redundancy as part of the proposals set out in this statement.

If a successful sale or transfer of ownership is possible and such sale or transfer falls within the provisions of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), employees employed in or assigned to the relevant businesses will transfer to the new owner under TUPE. However, if a sale or transfer is not possible, employees will remain at risk of compulsory redundancy.

Remploy will shortly issue a consultation document, and has today started talking to the trades unions and management forums about the proposals and the possible impact on employees, and a formal 90-day Consultation Period on the proposals will begin.

We will be consulting with the trades unions and management forums about the potential compulsory redundancy of the 875 employees directly or indirectly involved with the operation of these businesses. During the consultation period Remploy will consider all reasonable measures to avoid redundancies.

During this time we will work with unions and representatives to explore ways of:

• avoiding redundancies where possible
• reducing the number of employees affected
• lessening the impact of any potential redundancies

The Government has put in place a comprehensive £8m package of support for employees if redundancies are unavoidable:

• Individual tailored support for every disabled employee through a Personal Case Worker for up to 18 months.
• Personal Budgets - £4 million has been made available for individuals to purchase individual back to work support.
• Community Support Fund - £1.5 million has been allocated to support local disabled people’s organisations in providing support to displaced Remploy workers.
• Working closely with Business Disability Forum (BDF) to give ex-Remploy employees access to job opportunities with their member employers.
• The Jobcentre Plus Rapid Response Service will be available to deliver individual support to all those affected by redundancy including non-disabled employees in England. This support will be delivered by PACE in Scotland and React in Wales

End of Statement.

Esther McVey, Minister for Disabled people said in her statement to Parliament yesterday that 15% of those affected by factory closures were now in work and that, out of the 1,349 disabled people affected, 875 had expressed an interest in returning to work and were actively using the support package.

She also said that, "It is one of our top priorities to maximise employment opportunities for Remploy factory leavers" and committed to keep 'the House updated in the New Year.

However union bosses say they are furious at the news and have blasted the timing of the proposals.

Phil Davies, GMB National Secretary said "This is devastating news but not untypical from this uncaring government who cannot be relied on to protect the vulnerable. To make this announcement three weeks before Christmas is despicable.

"Less that 40 of the 1,200 people made redundant in August and since have found jobs. The others are sitting at home isolated from the rest of society.

"GMB are still putting together a dossier on the failure of the government to sell off as a going concern any of the first 36 factories to close. They are now adding another 15 factories adding another 700 disabled workers to the list of the unemployed.

"The Sayce Report is not being followed as there is a total disregard of social enterprises and workers co-ops. Little or no help has been given to the disabled workers themselves to set up such enterprises. Neither have the disabled people been given the support and opportunities to retrain to get mainstream jobs they were promised in the Sayce Report.  Only the Welsh Assembly has made real attempts to do this. Neither the UK or Scottish Governments have done anything to help of support these workers sacked as an act of public policy.

"There is an alternative. These workers could be put back to work making uniforms for our troops, police and nurses and furniture for our schools like they did before the work was outsourced to China.

"Sheltered workshops are allowed under EU procurement rules and can successfully  keep disabled workers gainfully employed if supported by public contracts. Instead this government used the Sayce Report and RADAR, Mind, Mencap, Scope, RNID and Leonard Cheshire as 'Trojan horses' to close the Remploy factories.

"Radar characterised Remploy as some out of date solution with attempts to stigmatise it as a form of ghettoisation and linking it to old institutional forms. You could use the same argument against staging the Paralympic games.

"These organizations started with an aspiration we all share where all disabled people are treated in an equal way in employment and that ideal state may lead to a completely different view of what support is required.

"This is what happens when disabled charities make 'the best' the enemy of the 'good'. They started with resolutions that will not be achieved in the short run. They are then pickled into a rigid dogma, a code, and they wento through the years sticking to that ignoring real needs, and they end in the grotesque chaos of disabled charities - disabled charities - used as Trojan horses to enable redundancy notices for more than 2,700 disabled workers in 54 locations across the UK.

"The Tories knew what they were doing using these 'useful idiots' who are party to this despicable announcement."

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