Posted 5th August 2013 | 2 Comments

Unions appeal for government to aid Railcare

BUSINESS secretary Vince Cable is being told that he can’t ‘wash his hands’ of rolling stock engineering company Railcare, after 152 redundancies were confirmed on Friday.

Union representatives are due to meet representatives from Vince Cable's Department for Business, Innovation and Skills to make their case for a short term cash injection of at least £1 million.

Unite and the RMT said Railcare had a full order book from October, and that Vince Cable should intervene immediately to encourage the banks and rolling stock companies to provide short-term loans, which would keep the skilled workforce intact.

The unions also hit out at the administration process in the UK, which they claimed 'did not allow a breathing space for a rescue package to be put together'.

A total of 119 jobs are to go Wolverton in England and 33 at Springburn in Scotland.   

Unite regional secretary John Rowse said: “Vince Cable should not be allowed to wash his hands of Railcare. This is a very short-term attitude as the company has a full order book from October – what it needs are loan facilities to tide it over.

“The administration process in the UK is not fit for purpose as it does not allow enough breathing space for a rescue package to be put together. We should follow the Chapter 11 approach that is used in America which allows more time in these situations.

“The unions are scheduled to have a meeting at the Department for Business, Innovation and Skills – and we hope very much that this will still take place. The department must display more energy and initiative to save these highly skilled jobs that our industrial base relies on.

“This is a terrible blow to the workers made redundant, their families and the local communities – Unite will do all we can to support our members and campaign for their future livelihoods.”

RMT general secretary Bob Crow said: “This is appalling news and RMT is demanding to know just what Vince Cable and his department have been up to following their pledges to support the workforce at Railcare in getting through this short term cash flow crisis.

“We were told that BIS had intervened to stop the redundancy process and yet nearly 150 skilled and loyal workers have been told personally that they are finished despite the fact that Railcare has a full order book from the end of the summer. The names of those on the redundancy list were read out in mass meetings in the most brutal and despicable fashion.

“This scandal makes a mockery of the Government's paper pledges to support British engineering jobs."

Reader Comments:

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  • Bob., Glasgow

    I also am an ex employee with 30+ years service in springburn and we new it would end in tears the moment the CEO bought the Glasgow manager a 6 figure sum house and a brand new porsche car as a bonus while we struggled to get any overtime.

  • Wade Coley, Milton Keynes

    As a member of staff with 38 years service who has just been made redundant by mail I wouldnt give Railcare's present management any more money to squander this company has been in trouble since the management buy out in 2007 Ifeel sorry for anyone who is trying to make it work(thats the workforce) because the owners could not care less they are sitting pretty