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Hundreds of jobs lost as sealing specialist goes into ...

Hundreds of jobs lost as sealing specialist goes into administration

05 October 2012

Hundreds of workers at Schlegel Automotive Europe Ltd in Coalville, Leicestershire have been left devastated by an announcement yesterday (Thursday 4 October) that the company has gone into administration.

The sealing specialist employs 334 highly skilled workers, of which 218 are now at risk of being made redundant. Due to the nature of shift-work, many of the workers were informed last night with the remainder being informed today (Friday 5 October). The remaining workers, not selected for redundancy, will be kept on until existing contracts have been honoured. 

The union has been working closely with the local management team since Schlegel was purchased by the RUIA Group in 2008. However, it only became clear earlier this year that the group had no intentions of committing the resources and support it promised.

Unite believes these job losses are the direct result of the loss of a large Nissan contract and the total failure by the RUIA Group to honour the commitments it made when it purchased Schlegel. 

Working closely with the administrators - Springfield’s Business Recovery based in Leicester - Unite will try and secure a buyer for the remaining business and ensure that those who have lost their jobs get the best redundancy entitlement.

Unite national officer, Tony Murphy, said: “Hundreds of loyal workers have been left utterly devastated by the news that Schlegel has gone into administration. Our main priority now is to save as many jobs as possible and ensure those who lose their job receive the best redundancy package available.

“We are committed to ensuring that any prospective buyer will work closely with Unite and local management to secure a positive and sustainable manufacturing business in Coalville.”

ENDS

For further information contact Harish Patel on 07739 654865 or Ashraf Choudhury in the Unite press office on 020 3371 2061 or 07980 224761.

Notes to editors:

Unite is Britain and Ireland’s largest trade union with 1.5 million members working across all sectors of the economy. The general secretary is Len McCluskey.