City Council steps in to support closure-threatened Remploy

[dutchman]

Coventry council has stepped in amid closure fears at the city’s Remploy factory for disabled workers.



Council deputy leader George Duggins joined Jim Cunningham MP in recent talks with minister for disabled people, Maria Miller, after March’s government announcement of Remploy closure plans.

The council has now agreed to act as a “facilitator” to aid any future bid to take-over state-run Coventry Remploy in Tile Hill.

The Coventry factory is believed to be viable and was not among 36 of 54 Remploy sites facing closure by the end of the year when government funding will be pulled.

But the axe potentially hangs over the Coventry factory in a second wave of funding withdrawal – unless a private company or social enterprise can take over its running. Mr Cunningham challenged government notions that Remploy creates ghettoised factories which segregate disabled people from mainstream employment.

It is feared the ongoing recession and economic climate would result in disabled workers being unable to find alternative employment.

Mr Cunningham said the minister confirmed government intentions to transform Remploy into a mutual, social enterprise or cooperative – but was unclear about what it would mean for the whole workforce.

Coun Duggins said: “We want to ensure the survival of Coventry Remploy. It is a going concern, and we are determined to show leadership by facilitating discussions, and offering what help we can.

“The council is showing leadership in challenging times with our jobs strategy to help people into employment, and we also want to protect existing jobs.”

He added it was unlikely the council would enter into any partnership in trying to establish a co-operative or social enterprise.

Mr Cunningham said: “Remploy Coventry is among the most profitable Remploy factories. It has developed long-term contracts with companies such as Ford and Jaguar Landrover and provides work for many vulnerable and disabled people.

“It would be a disaster if they were to lose their jobs as a result of the government’s indifference.”

Following an independent review, the government believes £69million subsidies would be better spend on up to £2,500 for each threatened worker to find alternative employment – with grants for firms to assist their work.

[Spuffler]

Hard to understand how the government can consider closing profitable businesses such as Remploy. Even worse is in order to replace it with a half-baked alternative. Grants or not, how many firms want disabled people working for them? It would - to any person using common sense - be obvious that closing Remploy, putting all these people on the dole or disability benefit, paying them to find non-existent jobs, would be a total waste of money. Unless of course the aim is to put them on the dole, then leave them to starve...?

[dutchman]

They rely on benefits now Spuffler. A scandal broke in the Coventry Telegraph a few years ago when it was revealed they were being paid just 30p a day on top of benefits to assemble parts for Peugeot.

The main difference caused by a closure of Remploy would be that they were forced to look for alternative work or lose the benefits they receive at present.

[dutchman]

The Coventry automotive factory at least is apparently safe?

http://www.independent.co.uk/news/uk/po ... 89496.html

Workers at risk of redundancy are in 15 Remploy factories, with three automotive businesses not included.

Remploy said it had considered the viability of the remaining businesses and how they might move out of Government control.

The company said the automotive business operating from factories in Coventry, Birmingham and Derby was viable, with a strong and established customer base.

Remploy will now move to market this business and does not propose to make any of the employees redundant.

[rebbonk]

The automotive industry is very cut-throat. These factories might be viable for now because manufacturers cannot easily change suppliers mid model. But, how Remploy will fare when they have to stand truly alone with no government funding remains to be seen.

Can Remploy be realistically competitive when faced with much cheaper production bases around the world? I would hope so, but time will tell.