Around 150 workers leave AEI Cables today
Around 150 workers made redundant by a Birtley firm are the first to be forced out today, as their union brands it a scandal.
Bosses at AEI Cables served a notice to nearly 200 employees this week, but don’t plan on giving workers redundancy payments, instead proposing to enter a Company Voluntary Arrangement (CVA).
It’s legal process which allows companies with debt problems to avoid paying redundancies and employees have to apply for cash from the government instead.
But Chris Juke, GMB Senior Organiser, said:
“We’re very sorry for the hurt that’s been caused by an employer I hasten to add, a rich employer, it just shows the state of where we are in the UK and in this area.
“We will do everything we can within the law to address that but obviously we need other colleagues, not least of Westminster, to do their bit.
“The communication has been pitiful from the company. A highly skilled workforce has kept that plant going through thick and thin but with an owner that is offshore, is not interested in making product in this country and is clearly going to asset strip and take it abroad.”
A spokesman for AEI Cables said on Tuesday: “The company has been losing money for some time and, following careful consideration of other options to avoid or reduce the number of potential redundancies, it was necessary to either find a buyer or to cease production.
“Despite significant investment in the plant over the last two-and-a-half years, profitable production levels have not been achieved. With unviable output levels and without a buyer, we deeply regret that manufacturing operations will have to cease. **We will be providing all the advice and guidance we can to those being made redundant.”
We’ve reached out for further comment from AEI Cables and Ducab but they’ve been unable to provide one.