Disabled workers ‘consigned to life on dole’ by factory cuts

The company said no viable bids had been made for its furniture business, so it will close sites in Sheffield, Blackburn and Neath.

All 196 employees, including the 160 disabled workers, are at risk of compulsory redundancy, although they will be invited to consultation meetings over the next 30 days.

It is understood that Barnsley-based Metalliform, which makes school furniture, was seeking to take over the three factories but decided not to proceed.

Remploy factories were established 66 years ago as part of the creation of the welfare state, employing disabled workers in different enterprises ranging from furniture and packaging manufacturing to, more recently, recycling electrical appliances and operating CCTV systems and control rooms.

The Government said last year it would reduce its subsidy to Remploy, following an independent review conducted by Liz Sayce, chief executive of Disability Rights UK, which recommended government funding should focus on support for individuals, rather than subsidising factory businesses.

At the time, in March 2012, there were 54 Remploy factories, as well as the company’s recruitment arm, employing 3,600 workers.

Around 1,700 factory jobs have since been lost, and by the end of the year there will be no Remploy factories left.

Remploy said the Government has put in place a comprehensive package of support to help workers losing their jobs, including a personal case worker.

James Stribley, GMB organiser at Remploy, said workers were “disappointed” and had been left fearing for their futures. “Unless a new buyer comes forward, many of our members look like spending their life on benefits,” he added.

Remploy has told Sheffield MPs it will contact other companies who previously expressed an interest in the furniture factories to see if they remain interested.

Unite general secretary, Len McCluskey, said: “Iain Duncan Smith (Work and Pensions Secretary) and the company need to stop hiding behind a veil of secrecy and explain why in this final act of callousness no bids were deemed viable.

“The workforce has been kept in the dark and face a future of fear and insecurity as this cruel Government consigns them to a life on the dole.

“Remploy has provided employment and dignity in a safe and secure environment for thousands of disabled people.”

Jerry Nelson, national officer of the GMB union, said: “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.”