Hain faces anger at closure plans

12 Sep 2007

Work and Pensions Secretary Peter Hain has faced angry protests at the TUC conference over proposed closures of factories employing disabled people. Mr Hain was handed dozens of redundancy notices sent out to staff at Remploy - a government-funded organisation which has proposed 43 plants should close.

GMB national officer Phil Davies called Remploy directors "despicable" and said the plans were an "absolute disgrace". Mr Hain said Remploy had a future but had to change to meet rising ambitions.

A total of 43 Remploy factories across the UK are due to shut, with the loss of 2,500 jobs. Remploy says none of its employees will be made compulsorily redundant and says the proposals will help it transfer money from loss-making factories into finding many more jobs in mainstream employment.

It says, for the cost of employing one person in a factory, it can fund four people in mainstream jobs. But Mr Davies told the conference the GMB had received assurances that no redundancy notices would be handed out - but said copies were sent out to factories last week.

The company says it had prepared provisional notices for those who had requested more information and only sent them to those who requested it.

Mr Davies said: "This despicable board of Remploy directors has acted against the interests of the British people.

In a reference to a 1986 speech by former Labour leader Neil Kinnock attacking the leftwing Militant Tendency, he said: "We have the grotesque chaos of a Labour government scuttling around handing out redundancy notices to disabled workers. What an absolute disgrace."

Mr Hain, who faced some heckling as he spoke, was handed copies of the redundancy letters as he prepared to give his address - he knew nothing about them. But he added: "I am committed to both change in Remploy and justice for Remploy workers. Mr Hain said change was needed to meet rising expectations

"Change because, over the last 60 years, the expectations and ambitions of disabled people have risen immeasurably, away from segregation in sheltered factories and towards participation in the mainstream workforce. "But, of course, there will be those for whom sheltered employment continues to be the best option. "So let me be clear. Remploy has a good future. Every one of its workers will get the protection and the opportunities they deserve."

He said he wanted to see a "negotiated settlement" between trade unions and management and consultation meetings would be held to see if an agreement was possible.

The results of a ballot of Remploy workers, on whether they should go on strike over the plans, will be announced at Labour's party conference later this month. The TUC conference supported the campaign and called for a moratorium on the closures.

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