Chamber
Plenary, 15 Feb 2007
15 Feb 2007 · S2 · Plenary
Item of business
Workers' Rights
First, I apologise to the chamber—I have had laryngitis this week, but I thought that it was important to come here today to make the case that the Simclar workers have been making to me as a local constituency MSP.
Since I first raised the matter two weeks ago at First Minister's question time, a sorry and disgraceful tale of injustice has emerged. I put a point to the First Minister about asset stripping, and that very afternoon Sam Russell put out a press release calling the First Minister, me and other politicians who had responded "ill-informed". Having listened to what the workforce has had to say—some of which I want to put in the public domain today—I think that members can draw their own conclusions about that.
This is a tale of a company that has demonstrated no regard for its workforce, employment obligations or the communities affected by the closure. It is a company that, as far as I can see, is motivated by profit. It is not working in partnership with the workforce, but operating and closing at the expense of the workforce and the local community.
I want to take a moment to say that I am very proud of how the workers and their families have behaved even though they have been struggling with no income in the past few weeks. They have behaved with dignity and in an orderly manner at public meetings and within the local community, despite much provocation. I know that members who have attended some of those meetings will acknowledge and agree with that.
No matter which part of the political spectrum members come from, they all see that an injustice has been done. Questions have to be asked about how the closure has taken place and about the ethics of a company that is transferring or selling—we are not sure which yet—capital assets within weeks of closure. For those who know the local situation, I speak of the B building in Kilwinning. Not only was that asset transferred to the parent company, Simclar International, but for the past few weeks the parent company has been charging Simclar Ayrshire rent. While the plant sits empty with no workers and no work, Simclar International continues to take rent. That is an outrageous situation. With no commercial activity taking place, the company is taking money out of the workers' pockets and what should have been their redundancy payments.
Questions have to be asked about how the company could simply close the doors and call in the administrators when it had orders on the books. I am told that there was work for at least six months, and in the communities that I represent such a timescale is not to be sneezed at. Six months of work in Irvine and Kilwinning is important. However, the company simply transferred the contracts to the parent company while telling us that it had no assets.
That brings me to the question of the millions of pounds of stock and assets that are held outwith Simclar Ayrshire, in the United States and elsewhere. They belong to Simclar Ayrshire, but the company appeared to forget about them until a redundant manager brought them to my attention and I passed the information on to the administrators.
Furthermore, pension contributions were deducted every week from employees' salaries until 29 January, but they were not paid to the pension company. One employee confirmed that the last payment to his pension company was on 14 December while the last deduction from his salary was 29 January. I say to Mr Russell that six weeks of pension payments is a lot of money to the families, because they have survived on nothing in the past two weeks. I call on Mr Russell, even now, to do the right thing and pay the money back.
At a recent meeting, the administrators said that there were buyers for much of the plant and machinery—Mr Gallie mentioned the movement of goods in and out. Who were the buyers? Simclar International, the parent company. We have to ask ourselves why it needs that additional equipment if there has been such a downturn in the market. The reason is that the contracts have been transferred. The highly skilled workers in my constituency who are turning up at the job centre desperate for work are being told that there is a company looking for their skills. It is called Flexible Recruitment Services, and the workers would have to be willing to travel to Dunfermline. Guess who the principal owner of the contract agency FRS is—Simclar International.
Questions have to be asked and answered. I am grateful to the minister, who responded quickly and came to the constituency on the Monday following the closure and called for a DTI investigation, which was the right thing to do. I have not had the opportunity to speak about the upskilling, retraining and regeneration of the area, which are important to me as the local MSP, but I hope that there will be opportunities to do that in future.
I support the amendment in the name of the minister.
Since I first raised the matter two weeks ago at First Minister's question time, a sorry and disgraceful tale of injustice has emerged. I put a point to the First Minister about asset stripping, and that very afternoon Sam Russell put out a press release calling the First Minister, me and other politicians who had responded "ill-informed". Having listened to what the workforce has had to say—some of which I want to put in the public domain today—I think that members can draw their own conclusions about that.
This is a tale of a company that has demonstrated no regard for its workforce, employment obligations or the communities affected by the closure. It is a company that, as far as I can see, is motivated by profit. It is not working in partnership with the workforce, but operating and closing at the expense of the workforce and the local community.
I want to take a moment to say that I am very proud of how the workers and their families have behaved even though they have been struggling with no income in the past few weeks. They have behaved with dignity and in an orderly manner at public meetings and within the local community, despite much provocation. I know that members who have attended some of those meetings will acknowledge and agree with that.
No matter which part of the political spectrum members come from, they all see that an injustice has been done. Questions have to be asked about how the closure has taken place and about the ethics of a company that is transferring or selling—we are not sure which yet—capital assets within weeks of closure. For those who know the local situation, I speak of the B building in Kilwinning. Not only was that asset transferred to the parent company, Simclar International, but for the past few weeks the parent company has been charging Simclar Ayrshire rent. While the plant sits empty with no workers and no work, Simclar International continues to take rent. That is an outrageous situation. With no commercial activity taking place, the company is taking money out of the workers' pockets and what should have been their redundancy payments.
Questions have to be asked about how the company could simply close the doors and call in the administrators when it had orders on the books. I am told that there was work for at least six months, and in the communities that I represent such a timescale is not to be sneezed at. Six months of work in Irvine and Kilwinning is important. However, the company simply transferred the contracts to the parent company while telling us that it had no assets.
That brings me to the question of the millions of pounds of stock and assets that are held outwith Simclar Ayrshire, in the United States and elsewhere. They belong to Simclar Ayrshire, but the company appeared to forget about them until a redundant manager brought them to my attention and I passed the information on to the administrators.
Furthermore, pension contributions were deducted every week from employees' salaries until 29 January, but they were not paid to the pension company. One employee confirmed that the last payment to his pension company was on 14 December while the last deduction from his salary was 29 January. I say to Mr Russell that six weeks of pension payments is a lot of money to the families, because they have survived on nothing in the past two weeks. I call on Mr Russell, even now, to do the right thing and pay the money back.
At a recent meeting, the administrators said that there were buyers for much of the plant and machinery—Mr Gallie mentioned the movement of goods in and out. Who were the buyers? Simclar International, the parent company. We have to ask ourselves why it needs that additional equipment if there has been such a downturn in the market. The reason is that the contracts have been transferred. The highly skilled workers in my constituency who are turning up at the job centre desperate for work are being told that there is a company looking for their skills. It is called Flexible Recruitment Services, and the workers would have to be willing to travel to Dunfermline. Guess who the principal owner of the contract agency FRS is—Simclar International.
Questions have to be asked and answered. I am grateful to the minister, who responded quickly and came to the constituency on the Monday following the closure and called for a DTI investigation, which was the right thing to do. I have not had the opportunity to speak about the upskilling, retraining and regeneration of the area, which are important to me as the local MSP, but I hope that there will be opportunities to do that in future.
I support the amendment in the name of the minister.
In the same item of business
The Presiding Officer (Mr George Reid):
NPA
Good morning. The first item of business is a debate on motion S2M-5581, in the name of Rosemary Byrne, on workers' rights.
Ms Rosemary Byrne (South of Scotland) (Sol):
Sol
This Solidarity debate is about improving workers' rights and strengthening trade unions throughout Scotland and the United Kingdom.The context for the debat...
Irene Oldfather (Cunninghame South) (Lab):
Lab
Will the member give way?
Ms Byrne:
Sol
I need to make progress; I have to cover a lot of ground.I seek an assurance from the minister that the situation will be rectified immediately, so that PACE...
The Deputy Minister for Enterprise and Lifelong Learning (Allan Wilson):
Lab
I am a lifelong trade unionist, too, and the subject matter of the debate is close to my heart. I thank Rosemary Byrne and Solidarity for giving us the oppor...
Ms Byrne:
Sol
Does the minister agree that up to now the PACE initiative has been disappointing and that there is a need to press for improvements as quickly as possible?
Allan Wilson:
Lab
In the context of PACE, there is an issue when an employer refuses to co-operate with public agencies that deliver services, as has happened in the case that...
Irene Oldfather:
Lab
Has the minister had any advice from officials about any way in which the closure might contravene the European information and consultation directive? Would...
The Presiding Officer:
NPA
You now have one minute left, Mr Wilson.
Allan Wilson:
Lab
Thank you, Presiding Officer—although that is not a long time in which to deal with what are fairly complex matters. I will perhaps come back to some of thes...
Jim Mather (Highlands and Islands) (SNP):
SNP
We are whole-heartedly in favour of workers' rights, and we are grateful to Solidarity for creating this opportunity to debate the subject. We believe that, ...
Jackie Baillie (Dumbarton) (Lab):
Lab
Jim Mather has talked about the Government's position. I wonder what the Scottish National Party's position is on the proposed bill to reform the trade union...
Jim Mather:
SNP
We will give it due consideration. Today, I am calling for a proper and full debate in which we learn from other places. There is a difficult blend to be ach...
Allan Wilson:
Lab
I agree. Would the member agree with me that the UK has been spectacularly successful in that context? It is one of only three EU countries that have surpass...
Jim Mather:
SNP
There has been an element of success but, if we consider countries such as Denmark, we find that they have achieved that better. We are currently facing the ...
Phil Gallie (South of Scotland) (Con):
Con
Rosemary Byrne's speech was wide-ranging and time is a constraining factor in the debate, so I will not seek to make interventions and I will not take any du...
Mr Jamie Stone (Caithness, Sutherland and Easter Ross) (LD):
LD
I apologise to the Presiding Officer and to Rosemary Byrne for being late. One is subject to the vagaries of the taxi service, such as it is.It may surprise ...
Jackie Baillie:
Lab
I am surprised.
Mr Stone:
LD
I thank Jackie Baillie for that.Having worked in the oil fabrication sector and in the drilling sector for some years, I understand exactly the fear that has...
The Presiding Officer:
NPA
I thank the member for being brief. Such short debates always mean truncated speeches and few interventions. They are not particularly satisfactory in that r...
Chris Ballance (South of Scotland) (Green):
Green
I will stick to my two minutes. The motion is excellent and it is important to debate such issues. It is positive that all members—in the motion and the amen...
Jackie Baillie (Dumbarton) (Lab):
Lab
I acknowledge the difficulties that have been experienced by workers in Simclar, NCR Dundee and Young's, and in Methode Electronics Europe in my constituency...
Tommy Sheridan (Glasgow) (Sol):
Sol
Will the member confirm the truth to the chamber—that the quotes that she read out come from the NUJ chapel that happens to be the Scottish Socialist Party c...
Frances Curran (West of Scotland) (SSP):
SSP
That is rubbish.
Jackie Baillie:
Lab
A member has responded to Mr Sheridan's point from a sedentary position. I understand that both the organisations to which I referred are in formal dispute w...
Mr Adam Ingram (South of Scotland) (SNP):
SNP
I deplore Jackie Baillie's rather petty contribution to this morning's debate. It did not set the right tone, especially for the Simclar workers who are look...
Frances Curran (West of Scotland) (SSP):
SSP
I welcome this debate on workers' rights, which is long overdue. I regret the fact that the chamber has been spurred into action on the matter by the Simclar...
Irene Oldfather (Cunninghame South) (Lab):
Lab
First, I apologise to the chamber—I have had laryngitis this week, but I thought that it was important to come here today to make the case that the Simclar w...
Campbell Martin (West of Scotland) (Ind):
Ind
I congratulate Rosemary Byrne and Solidarity on bringing the issue of workers' rights to the Parliament, and I acknowledge the immense amount of work that Ro...
Bill Aitken (Glasgow) (Con):
Con
This has been an extremely unhappy debate. I have never been a trade unionist, but I have been made redundant—it happened six months before the Parliament ca...