New jobs fears as one Remploy site closes and another sold off

The GMB represents staff at the firm, which employs people with disabilities, and said ministers should “hang their heads in shame” over the decision to close a site in Huddersfield.

Officials also said they were not confident a bid for a factory in Sheffield would be good for members, adding they were fearful that the number of jobs under a new owner would be slashed.

The Government announced it was withdrawing its subsidy for the loss-making national network of 36 Remploy factories in March 2012, and invited bidders to come forward by April 29 this year.

Since then, some plants, including a factory in Chesterfield, have passed into private hands, while the process is ongoing for others, including the branches in Sheffield and Huddersfield.

Remploy said a bidder had come forward for the Sheffield site and two branches in South Wales which make furniture, but there was no future for the Huddersfield factory which makes CCTV parts.

James Stribley, the GMB convenor for both sites, said members at the plant, which employs around 30 people, were disappointed and unlikely to find other work after the closure on August 8.

He added: “This government has had one objective - to slash and burn the Remploy network of factories, and the company has now announced the closure of Remploy Huddersfield.

“Many of our 31 members in Huddersfield are going to struggle in the main. Many will spend a life on benefits after working all their lives and with dignity.

“They now have no choice as their work has been taken away by the Remploy board and this Tory Lib Dem government. They need to hang their heads in shame.”

Mr Stribley said the 93 staff at the Sheffield factory had been told the plant’s future had been secured, but added they were concerned that a new owner would try and make savings.

“Remploy management has made an announcement that they have a preferred bidder,” Mr Stribley said.

“However they are refusing to tell us who that is or what part of the business and how many jobs will be preserved.

“It might be a good thing that the furniture business will be taken over. However we are treading with caution. There may some jobs at the end of process but this doesn’t mean there will be meaningful jobs.

“For example when Remploy Chesterfield was in the same situation under a TUPE transfer 33 jobs were lost and 33 saved and terms and conditions of employment were changed.

“We don’t believe terms and conditions will be protected and our members who are not lucky enough to get a job are going to struggle.”

Remploy and its advisors KPMG did not confirm the closure of the Huddersfield factory or the future of the Sheffield site in a statement.

It said: “Following the announcement that Government subsidy for Remploy’s enterprise businesses would be withdrawn by September 2013, a sale process was put in place as a means of avoiding compulsory redundancies where possible.

“The best and final offers received have now been considered and assessed against a range of criteria including the continued employment of disabled people, sustainability of the businesses and value for money..

The Remploy board has instructed KPMG to proceed to detailed negotiations on the sale of both businesses with the preferred bidders.

“While this is an encouraging step we cannot guarantee how many jobs will be preserved, and all employees remain at risk of redundancy.

“Remploy and KPMG will work closely with preferred bidders with the aim of completing any possible transactions by mid-June.”