THE trade union campaign to reverse the closure of 43 Remploy factories received a significant boost when the All Party Group of MPs published details today of their enquiry into the future of Remploy and the closure programme announced in May 2007.
The MPs’ report says, ‘We recommend that Remploy management stop its closure programme and develop a properly consulted, carefully thought-out business plan based on a thriving suite of factories across the UK.’
The report makes the following recommendations to Remploy management and Government:
• Recommendation to Remploy management: revise the closure programme using the criteria of long term business sustainability, level of subsidy, location and local labour market consideration.
• Formulate a proper business plan to identify key markets, explore new markets, and ensure proper income sustainability.
• Set up a task force to inform all central and local government purchasers of scope under Article 19 of EU legislation for great procurement.
• Employ new Sales and Marketing staff.
The report comes as the Remploy trade unions are in the middle of the consultation period, on proposed redundancies of up to 3,000 workers, with the Remploy management. The next sessions of the consultation exercise will focus on the trade unions alternative plans for Remploy
At the same time the Remploy unions are writing to over 50,000 local councillors, school governors, members of National Health Service Trusts, members of police authorities and others with responsibility for buying goods and services for the public sector drawing their attention to the fact that the EU Directive allows for their authorities to place work with Remploy without going to tender.
The unions are asking them to help generate a steady stream of public sector orders to keep all 83 Remploy factories busy. The unions plan to publish a public petition with the names of public bodies and authorities willing to pledge work to Remploy.
The trade unions will set up a task group to translate these pledges into viable orders for Remploy factories.
The Remploy trade unions have now made clear that the task of seeking mainstream employment for disabled workers generally, undertaken by Remploy Interwork to date should be transferred to the Job Centres who has the expertise to do this job.
This Interwork function should no longer be confused with providing supported employment in the specialist Remploy workshops for disabled workers.
The unions reject the theory that you can either have specialist workshops for disabled workers or see disabled workers in mainstream employment but not both.
The trade union say that you can have both.
The Remploy trade unions are setting up a mobile crusade/demonstration of disabled workers which will visit all 83 locations in Great Britain with Remploy factories in September 2007.
At each location there will be public meetings and meetings of the Remploy members.
Local councils and local health authorities on route that have not already done so will be asked to publicly pledge work for Remploy factories.
The mobile crusade will begin in Aberdeen and finish in London and will then go on to Bournemouth for the Labour Party Conference.
During September notice will be given for an official strike ballot to take place in all 83 Remploy factories conducted by the Electoral Balloting Service. The ballot result will be available at the start of the Labour Party Conference.
Phil Davies, leader of the Remploy Consortium of trade unions and GMB National Secretary said, ‘This report from the MPs demanding that the management stop the closure programme is a big boost to the trade union campaign to save the Remploy factories.
‘The Remploy trade unions will now be asking Peter Hain MP, Secretary of State for Work and Pensions to declare a moratorium on the closure programme to enable management and government to act on the MPs recommendations and the trade union alternative plans.’
Jennie Formby, T&G Section of Unite, National Secretary, and Chair of the Remploy Consortium said, ‘The Remploy trade unions today set out the timetable for the trade union campaign to save these factories.
‘Central to the campaign is the search for pledges from public bodies to place viable orders with Remploy.
‘The trade unions are hopeful that the public petition pledging work to Remploy as allowed under the EU Directive will show what can be done when people are asked directly to provide work for supported workshops for the disabled.
‘We are determined not to just roll over and let the company or the government destroy Remploy.
‘The mobile crusade to take place as the workers are balloting for industrial action in September will concentrate minds and demonstrate that the disabled workers will fight for a future for the 83 factories.’
The MPs attending the all party group evidence sessions were Frank Doran MP (Aberdeen North), Helen Goodman MP – Chair (Bishop Auckland), Dai Davies MP (Blaenau Gwent), James McGovern MP (Dundee West), Ian Wright MP (Hartlepool), George Howarth MP (Knowsley North & Sefton East), Dr Ian Gibson MP (Norwich North), David Watts MP (St Helen’s North), Robert Flello MP (Stoke-on-Trent South), Mark Hendrick MP (Preston).
The report declares ‘Our purpose – To examine the proposals announced to Parliament on 22nd May by John Hutton, Secretary of State at DWP, concerning the future of Remploy and in particular the proposals to close 43 of the 83 factories, merging 11 of these with a nearby factory.
The report’s findings include under ‘The Financial Envelope’ – ‘The Government has set Remploy a firm ceiling of a £555m grant over 5 years: equivalent to a cash freeze on the 2001-02 level of support. (12)
‘This is a real terms financing cut. Furthermore, the Government is requiring Remploy to finance £48m of its pension deficit from within this budget so in effect there is a cut of £10m in support for Remploy factories. (13)
‘It does not seem fair that the past pension deficit, which has built up over many years, should be repaid over this short period. This effectively burdens current employees with the consequences of financial decisions taken in the past over a long period of time and over which they had no control. (14)
‘We recommend therefore that Government should finance the £48m pension deficit outside the £555m budget. (15)’
It states in its ‘Conclusion’ – ‘We find that Remploy management’s approach to factory closure is haphazard and without clear basis.
‘Remploy appear neither to have formulated a business plan based on running a successful business, nor to have established a plan to run a public service.
‘We recommend that Remploy management stop its closure programme and develop a properly consulted, carefully thought-out business plan based on a thriving suite of factories across the UK. (34)
‘We also recommend that HMG revisit the £555 million financial envelope and finance the £48 million pension fund deficit separately. We are particularly concerned that relations between management and employees have deteriorated further and believe the adoption of our recommendations would provide a basis for improving these. (35)
‘We are sending this paper to the Remploy management to take account of in their consultation. As far as the policy framework is concerned, we are seeking a meeting with the Secretary of State (DWP). (36)’
