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Hain: Final Remploy plan will give a fair deal to disabled workforce
Hain: Final Remploy plan will give a fair deal to disabled workforce
The Remploy Modernisation plan will give a fair deal to the disabled workforce, with fewer factory closures and many more disabled people supported in mainstream employment, announced Secretary of State for Work and Pensions Peter Hain today.
Giving the green light for the plan, which will see 55 factories remain open - 15 more than originally proposed - Peter Hain urged the company and the unions to continue working together to make the plan work for disabled people across the country.
Peter Hain said:
"I have today agreed the final proposals that the Remploy Board submitted to me on 12th November. The proposals will mean many more disabled people supported in mainstream employment, fewer factory closures than previously planned and steady improvements in value-for-money.
"I can guarantee that in those factories which are proposed for closure there will be no compulsory redundancies for disabled workers. Furthermore, all those disabled workers who move into new employment will have all their terms and conditions, including membership of their final salary pension scheme, protected.
"The Remploy Board will also look at any third party interest in running these factories. I have been made aware of interest Remploy has received in keeping some form of production or training which could well involve existing Remploy workers at five of the sites due for closure: Lydney, Glasgow Hillington, St Helens, Ystradgynlais and Brynamman. At four other sites - Mansfield, Pinxton, Plymouth and York - there is the prospect of staff transfers to nearby, and mostly local authority supported plants.
"The sooner the process of modernisation begins, the greater the opportunity to maximise the number of additional factories that can be kept open. I have made clear my commitment to working within Government to help bring reliable, good quality public contracts into supported factories and businesses, including Remploy, using European procurement rules.
"It is now up to Remploy to make these plans work. I want to see the company and the unions continue to work together, to make sure we get a fair settlement for existing Remploy workers while opening up opportunities for thousands more disabled people to move into jobs."
Notes to editors
1. Remploy's modernisation plan intends to:
* Quadruple the number of disabled people they support into mainstream employment, through their Employment Services business.
* Close 17 factories (15 fewer than in the original plan)
* Eleven factories will also close and merge with another local factory
* The remaining 55 factories will stay open, subject to satisfactory progress towards reducing the cost per disabled employee.
2. The principal changes from the 22 May proposal are:
* Sales from public procurement have been increased from £298m over 5 years in the 22 May proposal to £461m. This is 130% higher than the current level of sales to the public sector.
* The plan builds in further cost savings of £10m over 5 years, from changes in working practices and cost reductions in non wage costs. A total cost saving of £59m.
* Proposals have been developed for short to medium term training of those disabled people who are furthest from employment. The Company plan to train around 500 disabled people though their factories.
3. Remploy is part of a wider agenda of delivering welfare reform across the country. This week the Prime Minister announced new mandatory skills training for benefit claimants and Peter Hain set out the contracting principles for the delivery of welfare services.
4. This is all part of the government's commitment to help more people off benefits and into work, where they can support themselves and their families.
Website http://www.dwp.gov.uk
