More than 100 jobs look likely to go at Railcare’s Wolverton site after administrators BDO confirmed that around 40 per cent of the permanent staff at the fleet refurbishment company are to be made redundant.
Earlier this week, Railcare, which employs a total of 500 people in Milton Keynes and Glasgow, failed to pay its staff wages. And the former Wolverton rail works went into administration yesterday.
If 40 per cent of jobs are lost it would leave a reduced staff of just 76 on the Glasgow site and 139 at Wolverton.
“The latest devastating news for the workforce comes less than 24 hours after Railcare plunged into administration due to a cash flow crisis, despite having a full order book of work from October, with the main problem being delays to fleet refurb programmes resulting from the Government’s rail franchising timetable being aborted after the West Coast fiasco,” claims Rail Union RMT.
“RMT and Unite have now been joined by the STUC and local politicians in demanding Government support and intervention to stop the loss of hundreds of skilled engineering jobs.
RMT general secretary Bob Crow added: “We are seeking an urgent meeting with Vince Cable and the administrators BDO to stop hundreds of workers who could be doing urgent rail fleet refurbishment work, while paying their taxes, from being thrown on the dole.
“This is a ridiculous situation that requires urgent joined up thinking from government before lives are wrecked and money wasted on state redundancy payments that could be used to cash flow this perfectly viable business.
“Anyone who has traveled on the railways lately will know there’s plenty of work needed on our train fleet to keep these staff in work rather than dumping on the dole these skilled engineers who are the victims of this rapid corporate collapse at Railcare.”