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Hundreds out of work as firm loses contract

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Saturday, October 06, 2012
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Leicester Mercury

Hundreds of workers at an engineering company have been made redundant.

A total of 222 workers out of a staff of 336 at Schlegel Automotive Europe Ltd, in Bardon Hill, Coalville, have lost their jobs.

  1. Martin Traynor, managing director of the Leicestershire Chamber of Commerce, said he was saddened that another local firm

    Martin Traynor, managing director of the Leicestershire Chamber of Commerce, said he was saddened that another local firm

The staff were told at meetings yesterday and the day before about the job losses and that the company had gone into administration.

The company in Beveridge Lane, which specialises in making car sealing systems for the motor industry, was established in 1958.

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A 52-year-old worker, who has been at the firm for 17 years, said the news had come as a real shock.

He said: “We did not expect this at all.

“There has been no consultation about these job losses. It was more or less a case of being called in and told you did not have a job any more.

“A lot of us feel we have been very badly let down by the company. We have given them years and years of skilled work and then we get dumped like this.

“God knows what will happen to lots of the blokes who work here. It is not a good time to be looking around for a new job. For a lot of us, age is not on our side.”

Unite spokesman Harish Patel said the union was disappointed with the job losses at the company.

He said: “The union has been working closely with the local management team since Schlegel was purchased by the RUIA Group in 2008.

“Unite believes these job losses are the direct result of the loss of a large Nissan contract. Working closely with the administrators, Springfields Business Recovery based in Leicester, Unite will try to secure a buyer for the remaining business and ensure that those who have lost their jobs get the best redundancy entitlement.”

Situl Raithatha, director at Springfields, said: “A detailed assessment is being carried out as to the viability of continuing to trade the business whilst a buyer is sought.

“Regrettably, a significant number of redundancies have been necessary due in particular to the loss of volume which accounted for a substantial portion of the company’s turnover.

“We are continuing the process of liaising with the trade unions and other stakeholders and are hopeful that a buyer can be found. ”

Martin Traynor, managing director of the Leicestershire Chamber of Commerce, said he was saddened to hear that another local firm had shed jobs.

The news comes just a few days after it was announced the RF Brookes food factory, in South Wigston, was to close by March next year with the loss of 229 jobs.

United Carpets and Beds, which has three outlets in Leicestershire, has announced it is to close a number of stores.

The furnishing firm, which has 420 staff in 72 stores, has outlets in Aylestone Road, Aylestone, Melton Road, Belgrave, and Sherrard Street, Melton.

The United Carpets’ trading arm went into administration on Thursday but the Rotherham-based furnishing chain bought its subsidiary immediately out of administration.

The firm is now holding talks with landlords to try to reduce rent payments.

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  • Profile image for Bob491

    by Bob491

    Thursday, October 11 2012, 2:10PM

    “What exactly is this austerity programme designed to do?

    The Con boy Osborne stated it would reduce the deficit to nothing in five years.

    Pull the other one!

    In fact it is increasing the deficit, by over 20% this year alone. Even the Con boy himself says that his plan will not succeed. He's now quoting eight years, which means that in reality some progress might be achieved in double that time (16 years). Austerity on its own, ie plan A, will never work - it will just lead to a downward spiral instead as we are already witnessing in Greece and Spain. This will also lead to great divisions in society. Even the right wing IMF agrees, as did the Newsnight programme on TV.

    So what is this Con government doing about it?

    Putting up VAT and other taxes for the unrich.

    Cutting taxes for the considerably over wealthy.

    Dumbing down NHS and education services for those who can't afford to go private.

    Forcing many small businesses out of action.

    Forcing over one million youngsters out of work, not to mention lots more women and the disabled too.

    Swearing at and publicly demeaning police women.

    Phoning and e-mailing News Corp on a regular basis.

    Accepting many £millions into Con party funds from bankers, financiers and health company bosses. I could go on.

    Oh Dear, the Con boy Osborne is a complete failure and the wimp of a PM dare not sack him.

    Unfortunately for two and a half more years we are stuck with a One Notion Con government - plan A, and when that fails, more plan A, and when that fails, even more plan A .........

    .......... unless the LibDems finally come to their senses and pull the plug!”

  • Profile image for democrat

    by democrat

    Wednesday, October 10 2012, 1:23PM

    “Er Bob

    Big flaw in you argument (as ever) austerity is not supposed to drive growth.

    As it is the IMF (you were quoting them favourably yesterday) are forcasting UK grothw to be positive and higher than the Euro area.

    Anyway - Can I assume that as you did not challenge my other comments yesterday you agree with them or are they just too complicated to grasp.

    The Plan A Plan B /Greece /Bankers thing is getting a little thin now Bob - perhaps you could flesh these out a little”

  • Profile image for Bob491

    by Bob491

    Wednesday, October 10 2012, 12:44PM

    “Quote: "Is there an echo in here?"

    There is now!

    "Having watched the beginning of tonight's newsnight programme, it vindicated all that I have said. But watching the Greeks tearing themselves apart is worrying. Let's hope it doesn't come to that in UK.

    Meanwhile democrat remains unable to comment on Osborne's failed growth-less austerity plan A. All he has managed to do is to assign to me what he would like me to think, then claim it is wrong. This is a normal Con tactic!"”

  • Profile image for democrat

    by democrat

    Wednesday, October 10 2012, 8:03AM

    “Is there an echo in here?”

  • Profile image for Bob491

    by Bob491

    Wednesday, October 10 2012, 12:00AM

    “Having watched the beginning of tonight's newsnight programme, it vindicated all that I have said. But watching the Greeks tearing themselves apart is worrying. Let's hope it doesn't come to that in UK.

    Meanwhile democrat remains unable to comment on Osborne's failed growth-less austerity plan A. All he has managed to do is to assign to me what he would like me to think, then claim it is wrong. This is a normal Con tactic!”

  • Profile image for democrat

    by democrat

    Tuesday, October 09 2012, 10:09PM

    “And repeat to fade”

  • Profile image for Bob491

    by Bob491

    Tuesday, October 09 2012, 8:44PM

    “Quote: "In fact Osborne is putting up the debt, 20% this year alone, along with long term and youth unemployment and he has forced the UK into the longest double dip recession in living memory. And with his floundering, the situation is steadily getting worse with no end in sight to the human misery he is causing. A triple dip recession is on the cards! Perhaps if he pursued the wealthy tax avoiders, even if many of them are his own friends and party donors, it would help to improve the situation.

    The right wing IMF keeps telling him to change course to plan B, but he really doesn't seem to have a clue what to do, does he, apart from heaping more and more misery on the unrich."

    And yet democrat still gives no answer to the evidence before him. Even Osborne admits his polices are failing and have no chance of putting right the problems caused by the greedyguts bankers for many years to come.”

  • Profile image for democrat

    by democrat

    Tuesday, October 09 2012, 8:24PM

    “Bob491

    Change the record

    You dismiss my understanding of economics but cannot challenge my re-post which killed your Ponzi economic theories.

    The Bankers 'forced' it upon us. I don't remember Gordon Brown saying ' Oh - where are all these taxes coming from - is it ethical or sustainable?!' Of course he thought he had re-writted the rules and abolished 'boom and bust!'

    Even J M Keynes said that whilst Governments can indeed stimulate growth by borrowing in difficult time they must first have ran a budget surplus when times were 'good'. Brown, Balls & Ashworth ran an increasing deficit, fuelled by further debt, so they broke the rule of the person they claim would have supported their 'plan'.

    You've been mugged and don't have the intellect to even understand it that you have been robbed.”

  • Profile image for democrat

    by democrat

    Tuesday, October 09 2012, 8:10PM

    “prog_rock_fan

    We are not that far apart I think. You have misquoted me a little though. The point that I was trying to make was that we need the wealth creators to effectively create the money that drives the system. Yes, the public sector can make roads that enable us to get to work but the really big projects always get contracted to Carillion et al because they have the resources to deliver on the scale required (although whether the tax payer gets best value is open to debate!).

    The role of the Public sector is to ensure that the infrastructure is there to support economic growth and the well- being and development of the nation.

    Your BR point is a good example of where privatatisation has failed. The rail network was developed entirely by entrepreneurs who risked capital to deliver a service that people & industry needed for how how else was it possible to move goods and people over long distances at a reasonable cost? Some succeeded and made money - some failed and lost money but it was private money that did it. During the Second World War the operations of the railways was co-ordinated at a national level for the common good and post-war it was privatised for wholly idealogical reasons. Of course the rise of the car reduced the need for rail over time and we have struggled with a rail strategy to date.

    Ultimately I see the role of government is to ensure that the services we want and can afford are delivered to the standard we require. Whether it is delivered by Public Sector employees or Private Sector employees is of no interest to me but it must be delivered, at the right standard at the price agreed.

    Some years ago I was working for a major manufacturer of a certain product (global top 10). This was the at the time (probably 06/07) when Gordon Brown was promising to get better value in Government Procurement. Anyway a 'team' came to meet us to try to negotiate a better deal. It became pretty clear early on that this team had not a single clue what they were seeking to achieve other than to 'demonstrate' that they had saved money. Several months passed/many hours were invested by us and them and they(the tax-payer) ended up paying more for the product than they were paying before the process started!

    The point to the story? What we really need is a co-ordinated development policy implemented by people that negotiate ruthlessly to get what we (the public) want at a price that is affordable. The Government always pays and represents no credit risk to the supplier so the margins that the service provider receive should be fair and profitable but also should reflect that the only risk they run is them not being able to deliver what they contracted for at the price they said they could deliver it for.

    I guess my real gripe is the clowns that seem to feel that money grows on trees and that household economics do not translate to national economics. We have gassed the credit card and the answer is to borrow and spend more? I think not. Governments do not create growth. They can create an environment for growth but it is private money that takes risk and creates wealth. Governments can create apparent growth but it is always debt fuelled We always ending up paying the bills because the Government cannot (and has never) defaulted - if we did we would be Greece or Spain (who are paying 6%+ on their national debt which is 5.5% more than I am paying on my mortgage!)


    It's going to be a long road but we owe it to our children to do the hard yards”

  • Profile image for Bob491

    by Bob491

    Tuesday, October 09 2012, 7:29PM

    “The fantasy is yours democrat, together with the incompetent Con boy Osborne who still unaccountably believes, against all the evidence, that merely pursuing austerity plan A will somehow magically reduce the debt that the greedyguts bankers and financiers, many of whom are friends and party donors of the Cons, forced upon UK and much of the rest of the world.

    In fact he is putting up the debt, 20% this year alone, along with long term and youth unemployment and he has forced the UK into the longest double dip recession in living memory. And with his floundering, the situation is steadily getting worse with no end in sight to the human misery he is causing. A triple dip recession is on the cards! Perhaps if he pursued the wealthy tax avoiders, even if many of them are his own friends and party donors, it would help to improve the situation.

    The right wing IMF keeps telling him to change course to plan B, but he really doesn't seem to have a clue what to do, does he, apart from heaping more and more misery on the unrich.

    Fortunately we only have two and a half years to endure his continual failures before we can elect a new government with a Chancellor who knows what he/she is doing. Let's hope that is not too late for the young people of this country.

    Have we ever had a government as out of touch with reality than this Con government?”

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