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More Jobs At Risk

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From the Beeb http://www.bbc.co.uk/news/uk-23520881

Hundreds of Railcare jobs at risk in Glasgow and Milton Keynes

About 500 skilled engineering jobs in Glasgow and Milton Keynes have been put in jeopardy after rail fleet repair firm Railcare went into administration.

Rail union RMT said earlier this week it was made aware that Railcare was in trouble after it failed to pay staff wages.

This followed the collapse of a planned takeover by a German company.

Accountancy firm BDO was appointed as the administrator at noon and said it was liaising with customers.

Bryan Jackson, BDO business restructuring partner, said: "Unfortunately the economic climate and difficult trading conditions significantly affected the business, together with reduced demand.

"However, we are hopeful of securing a sale and, depending on customer requirements, the company may continue to trade whilst this is explored."

The RMT has called on the government to provide assistance to Railcare.

General secretary Bob Crow said: "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."

Business Secretary Vince Cable said: "This is an important company in the supply chain and it is vital that key engineering skills and jobs are not lost.

"My department has been working with the company to try and find a solution. I hope a resolution can be reached soon."

The company has sites in Wolverton and Springburn.

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'The RMT has called on the government to provide assistance to Railcare'

Why? Let them go bust. Someone will purchase the assets/company and run it correctly.

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'The RMT has called on the government to provide assistance to Railcare'

Why? Let them go bust. Someone will purchase the assets/company and run it correctly.

indeed

the RMT should be working hard to push their members' redundancy compensation up the chain of creditors

I wonder if they are doing their members a disservice by arguing for something so wrong-headed as a govt bailout instead

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indeed

the RMT should be working hard to push their members' redundancy compensation up the chain of creditors

I wonder if they are doing their members a disservice by arguing for something so wrong-headed as a govt bailout instead

The firm does the major overhauls, refits and crash repairs on older trains and was formerly part of Alstom and before that BREL. They have good reputation for quality.

The issue was apparently a straight forward cash flow one, they hadn't been paid for work they had done so couldn't pay their workers or suppliers. They had a large order book of work for 3-4 years in to the future. The German buyer (Knorr Bremse - who already have UK plant but not train repairs) pulled out at the last minute.

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The firm does the major overhauls, refits and crash repairs on older trains and was formerly part of Alstom and before that BREL. They have good reputation for quality.

The issue was apparently a straight forward cash flow one, they hadn't been paid for work they had done so couldn't pay their workers or suppliers. They had a large order book of work for 3-4 years in to the future. The German buyer (Knorr Bremse - who already have UK plant but not train repairs) pulled out at the last minute.

so?

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The firm does the major overhauls, refits and crash repairs on older trains and was formerly part of Alstom and before that BREL. They have good reputation for quality.

The issue was apparently a straight forward cash flow one, they hadn't been paid for work they had done so couldn't pay their workers or suppliers. They had a large order book of work for 3-4 years in to the future. The German buyer (Knorr Bremse - who already have UK plant but not train repairs) pulled out at the last minute.

So which rail firm(s) owes them money?

Is the company they service the trains for in trouble?

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So which rail firm(s) owes them money?

Is the company they service the trains for in trouble?

they should be bailed out too!

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Presumably the trains still need to be serviced and it would not be cost effective to ship something as big and heavy as a railway carriage to Shanghai to have this work done, and so these jobs will re-materialise somewhere before too long.

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Presumably the trains still need to be serviced and it would not be cost effective to ship something as big and heavy as a railway carriage to Shanghai to have this work done, and so these jobs will re-materialise somewhere before too long.

When there are calls for bail-outs, I always wonder what sort of pay the management team and execs have been pulling out.

Let the market decide in my view, and hopefully assets can be bought cheap by new entrants, at a lower purchase price, with smarter plans and ideas, to improve things for remaining skilled workforce. No doubt the functions of the company were around in some other form, before 2007.

2011

Formed in February 2007, the award winning rolling stock services provider, RailCare, is a privately owned limited company

The ‘family roots’ of RailCare are one of the key cornerstones of its success, enabling decisions and communication between RailCare and its customer to be quicker and more personable. This is one of the reasons RailCare has become a major respected player in the rail market and has, in turn, seen the company grow to in excess of a £50 million business in the space of four years.

BDO said the administrators were 'liaising with customers to understand their exact requirements, so trading may continue in administration while a purchaser for the business and assets is sought.'

'Unfortunately, the economic climate and difficult trading conditions significantly affected the business, together with reduced demand', said Rayment. 'However, we are hopeful of securing a sale and, depending on customer requirements, the company may continue to trade whilst this is explored.'

Trade union RMT said it understood that that Railcare had asked the government for assistance worth 'not much more than £1m' to help it survive a short-term cashflow crisis, but was turned down. A planned takeover by a German company had collapsed, and 'crisis talks' with another potential buyer had also failed, according to RMT.

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When there are calls for bail-outs, I always wonder what sort of pay the management team and execs have been pulling out.

Let the market decide in my view, and hopefully assets can be bought cheap by new entrants, at a lower purchase price, with smarter plans and ideas, to improve things for remaining skilled workforce. No doubt the functions of the company were around in some other form, before 2007.

indeed - let the share holders, debt holders etc take haircuts

and by all means encourage the union to defend its members' redundancy rights

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