Hundreds out of work as firm loses contract
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.
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.
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.