Remploy jobs fear as Sheffield plant shuts

Three of the last remaining Remploy factories are to close

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

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.

The company added that a potentially viable bid had been made for its automotive factories in Birmingham, Coventry and Derby.

Detailed negotiations will now be held to complete a transaction as soon as possible.

Remploy factories were established 66 years ago as part of the creation of the welfare state, employing disabled workers in a series of different enterprises ranging from furniture and packaging manufacturing to 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 that government funding should focus on support for individuals, rather than subsidising factory businesses.

At the time of the announcement in March 2012 there were 54 Remploy factories, as well as the company’s recruitment arm, employing a total of 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 because of closures and sales.

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