This from the RMT...
RAIL UNION RMT today called for urgent intervention by Business Secretary Vince Cable to save 500 skilled engineering jobs in Glasgow and Milton Keynes after it was confirmed that rail fleet repairs and refurbishment company Railcare has been placed in administration.
RMT understands that the Government have been approached by the company for assistance in getting Railcare through a short-term cash flow crisis but that they were turned down. The union is pointing out that for want of what is estimated to be not much more than a million pounds in cash flow, the Government have turned their backs, whilst at the same time wasting an estimated £100 million on the aborted franchising timetable – a shambles which looks like it is the main cause of the crisis at Railcare.
Unions had been made aware earlier this week that Railcare was in trouble after it failed to pay staff wages and after a planned takeover by a German company collapsed. Crisis talks this morning with another potential buyer are thought to have collapsed forcing the company into administration with BDO appointed as the administrators.
RMT understands that although Railcare has a full order book and plenty of work in the pipeline from the train operators via the rail fleet leasing companies they ran into a cash-flow problem which has forced the move into administration threatening the jobs at the former British Rail plants at Springburn near Glasgow and Wolverton near Milton Keynes. RMT also understands that the key delays with moving the order book forwards have been caused by the franchising chaos in the wake of the West Coast fiasco which has held back fleet refurbishment plans while costing the taxpayer £100 million.
RMT General Secretary Bob Crow said:
“RMT is today calling on Vince Cable and the Government to step in to secure the future of these 500 key rail fleet engineering jobs following the collapse of Railcare, the Government cannot sit on their hands and watch this situation play out for the want of what we believe is not much more than a million pounds of cash flow finance. Reports that Railcare have already been turned down for assistance make a mockery of the Government’s business strategy and their stated objective of protecting skilled jobs.
“This crisis has left 500 staff unpaid and without any security and the root cause appears to be the franchising shambles in the wake of the West Coast fiasco. Vince Cable and the Government have a moral and economic duty to intervene urgently to save these jobs and protect the scheduled work and RMT will meet with him at any time to assist in moving this on. All of us now need to work together to secure these jobs and the important work that the company is involved in.”
ENDS
