Simclar Ayrshire- calls for DTI enquiry

After meeting union officials, local politicians and the administrator yesterday, Allan Wilson, the Enterprise Minister and Labour MSP for Cunninghame North in Ayrshire, is asking the Department of Trade and Industry (DTI) to investigate the circumstances surrounding the Simclar plants' closure. He is callling for an official investigation into the collapse of the Ayrshire electronics firm amid concerns that the parent company may have been involved in asset-stripping.
Simclar Ayrshire last week announced the closure of its plants in Irvine and Kilwinning and the loss of 420 jobs. The closure announcement led workers to occupy the Kilwinning factory in protest on Friday and stage an overnight sit-in.

An inquiry would include the scrutiny of events preceding the firm's insolvency, including the transfer of assets and contracts. The company has been suspected of stripping assets from the Ayrshire sites and transferring them to the multinational parent company, Simclar Group.

Mr Wilson said: "There are a number of unanswered questions surrounding this company which require investigation and we owe it to the workforce to get to the bottom of them. The closure announcement by Simclar was devastating news for the families directly affected and also for the wider Ayrshire economy." ( Glagow Herald 6th Feb)

Axed staff claim are to be given the minimum pay-off after Simclar announced the redundancies on January 29.
During a demonstration on Friday outside the Kilwinning factory, around 30 workers rushed inside the plant. The sacked employees, members of trade union Community, were joined by Rosemary Byrne MSP, of Solidarity.
Staff have since demonstrated outside the Irvine plant and will protest at the Simclar HQ in Dunfermline in Fife later this week.
The news of the closure by Simclar is devastating for the families affected and for the wider Ayrshire economy.

Willie Paterson, Scottish regional secretary of Community, said: "I am over the moon with the call for an investigation. We have had tremendous support from all political parties, and the community at large."
Mr Paterson said the minister will to put forward a package similar to that offered to those affected by NCR job cuts in Dundee.
Mr Wilson said: "I have made it clear that substantial funding, running to millions of pounds, will be available to assist with this work, and the area's economic regeneration. Whatever action is needed will be taken, whatever resources are required will be available."

Irene Oldfather, Cunninghame South Labour MSP, last week spoke of her fears of asset-stripping during First Minister's question time.
She said yesterday: "The prospect of a DTI investigation into the management of assets should provide much-needed answers. I will keep up the questioning of Simclar."
Ms Byrne accused local Labour politicians of shedding "crocodile tears" and blamed anti-trade union laws.
Simclar Ayrshire claims the job losses are the result of pressure from low-cost economies, falling orders, and uncertainty within Scottish manufacturing.
Sam Russell, Simclar Group chairman and founder, said: "The company's handling of the very serious financial situation which we faced in Ayrshire will, we are sure, be vindicated during the administration process. If we could have saved the Ayrshire business then we would have done so."