Hundreds of workers at Scottish factory laid off on Christmas Eve

Local community gathering donations to support families affected by 'disgraceful' redundancies

Monday 24 December 2018 20:25 GMT
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Hundreds of workers at Scottish factory laid off on Christmas Eve

Hundreds of factory workers have lost their jobs on Christmas Eve and do not know when they will be paid.

Employees at the Kaiam electrical components plant in Livingston, Scotland, were sent home on Thursday and told not to return.

The workers were then convened on Monday by administrators who told them there was “no option” but to make 310 of 338 employees redundant with immediate effect.

Local politicians have voiced outrage at the “disgraceful” treatment of staff, and timing of the shock closure.

Community members have set up a hub for affected families and have been taking donations of supermarket vouchers, toys and other goods for the festive period.

On Thursday, an employee told BBC Scotland: “We were all called into a meeting and they read out a statement from the people who run the company saying there wasn't enough money to pay the wages.

“The usual pay day is the 27th but it had been brought forward to the 21st for Christmas but now they say they don't even know if it will be paid on the 27th. My rent is due in the next few days and I don't know what I am going to do.”

On Monday, joint administrators Blair Nimmo and Alistair McAlinden of KPMG told employees the move had been sparked by declining work levels, high costs of operation at the site and the absence of customer orders.

The remaining 28 employees have been retained to help the joint administrators explore a sale of the business.

The Scottish government's Partnership Action for Continuing Employment (PACE) programme, which responds to redundancy situations, has been mobilised.

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It ensures that local public sector agencies respond to potential and proposed redundancies as quickly and effectively as possible.

In 2014, California-based Kaiam was given a £850,000 Scottish Enterprise grant to expand the Livingston site by moving production facilities there from China.

Scottish Labour MSP Neil Findlay said it was “fundamentally wrong” that a company awarded public money to locate to the area could “leave families high and dry at Christmas”.

“This is a bitter blow for the workforce, who have been treated appallingly by bosses at Kaiam throughout this process,” he added.

”People being told they are losing their jobs on Christmas Eve is simply disgraceful.

“What matters now is that every effort is made to support the workers and their families, who have been failed so badly.”

Scottish National Party MSP Angela Constance said: “I am extremely disappointed and angry that this company have abandoned their workforce in this way.

“They have walked away from their responsibilities and left many families desperate and desolate this Christmas.”

Mr Nimmo said administrators recognised the timing of redundancies was “particularly difficult”.

He added: “Our main focus during this challenging period is to work with all affected employees alongside Scottish Enterprise, Skills Development Scotland and West Lothian Council to ensure that the full range of support is available to them.

“We are also liaising with the UK government in relation to the timing of redundancy payments via the Insolvency Service.

“In the short term, we are exploring all available options for a sale of the business and would encourage any interested parties to contact us as soon as possible.”

Jamie Hepburn, Scotland's business minister, said: “The employees affected by today's announcement from Kaiam Livingston are our immediate priority and we will do everything in our power to help those affected by redundancy. It is an especially difficult time of the year for employees to learn such news.

"Scottish Enterprise has been working closely with Kaiam to explore all possible options to support the business and its staff, and I am disappointed that a solution could not be found to turn the company's situation around.

"Scottish Enterprise will work with the administrators to understand the potential options for the business going forward and explore all possibilities to rescue the jobs.

"Our PACE team were present at the meeting and stand ready to offer their full support to staff to help them find alternative employment.

“By providing skills development and employability support, PACE aims to help those affected by redundancy to get back into work as quickly as possible.

"PACE has a strong track record in doing that, and I hope the affected staff can take at least some reassurance from that.

"The administrators have advised the redundant employees that they will not receive their December 2018 salary and will require to claim this, subject to statutory limits, from the Insolvency Service.

"I am concerned about the impact this will have on families, particularly at this time of year.

“KPMG will be making urgent representations to the Insolvency Service that they accelerate the payment process from their usual four to six weeks and I will write to the UK government to encourage them to help with that request.”

Additional reporting by PA

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