Friday, 5 October 2012

Schlegel go into administration

Today many families in Coalville are shocked and scared at the news that major local employer, Schlegel, have gone into administration.

After losing high value contracts 218 workers (out of a workforce of 334) have been made redundant.

Those employees, retained to fulfil deals with existing customers whilst a new buyer is sought, remain uncertain whether they will be paid in coming weeks.

Many of those families who are left wondering tonight how they will make ends meet live here in Coalville.

These redundancies are a significant blow to hard working families and to the local economy.

As we hear this Tory-lead government telling us that the economy is getting better the people of North West Leicestershire know the truth.

In less than a year we have seen massive job losses in every corner of the district.

In Castle Donington at BMI Baby.

In Ashby at Standard Soap.

Now in Coalville.

Every one resulting in hundreds of redundancies.

And as families fear for their future what are the Tory administration at North West Leicestershire doing to help?

The answer is simple - cutting the council tax benefit of working age families who are already suffering.

Scared local families need help and a reason to hope for the future.

What they are getting is a worsening economy governed by a party giving ideological taxcuts to the super rich whilst ordinary people continue to struggle.


  1. Maybe you shouldn't be blaming the local council but the crook who owned it

  2. Clearly every business failing has it's own predominant reasons for doing so but it must be recognised that there is a clear recent trend of major businesses failing here in North West Leicestershire.

    Of course we must question why Schlegel has been allowed to fail but similarly we must ask why the local trading environment (and wider economy) is having such a devastating impact in this district.

  3. What needs to happen is to work with the employer with the staff and the Union to ensure that we can avoid the heartbreaking situation for the more thand 200 people who would lose their job.
    The Ruia Group need to be condemned for their treatment of the workforce and their international dealings which are the reason behind Nissan pulling their business.
    There is no blame to be placed on the local firm for the trouble they have been placed in and they deserve our support in reaching the best outcome for everyone.

  4. Well said, the automotive business is booming in this country at the moment, and it is down to the actions of the Ruia group that Schlegel are in this mess. This is a time for supporting those involved, maybe Mr Spence should look at all the facts and not be trying to score cheap political points.

  5. Well said, the automotive industry in this country is boomimg at the moment, it is the action of the Ruia group that Schlegel are in this mess, not the area the company is situated in. It is the families he should be supporting, maybe Mr Spence could find out all the facts before trying to score cheap political points.

    1. You are right Anonymous we should all be fighting for families devastated by redundancy.

      That is why it is a political issue.

      It is exactly those hardworking families who, facing long periods of unemployment, will see having to survive on benefits getting significantly tougher as Tories and LibDems introduce council tax bills next march of hundreds of pounds for those out of work.

      Clearly there are specific reasons why Schlegel has failed and bad management probably falls as one of them.

      There are also reasons, predominantly ideological, why time and time again major businesses are failing here in North West Leicestershire under a Tory-lead government and a Tory administration at Whitwick Road.

  6. I'm one of the so called " fortunate" emplyee's of whom has been retained to keep things ticking over here at Schlegel Automotive. Our future is more uncertain than those of whom at least now have some closure. The unacceptable predatory behaviour of the Ruia Group is entirely to blame for this. Political point scoring does nothing to stop this behaviour nor does it do anything for those workers and their families who have lost their jobs in what is the worse jobs market since the 1970's. The ruthless Indian based Ruia group is increasingly leaving a trail of misery
    whilst they continue to enjoy the high life as a result. Prison would be a more suitable abode.

    A bit of recognition for the management, staff and production team wouldn't hurt. Together they have worked incredibly hard to keep production going to a high standard under unbelievably difficult circumstances. Good luck to all those who lost their jobs on Friday in such an abrupt manner. We may know within a month if a phoenix will rise from the ashes left over from the Ruia Groups best efforts to bury yet another much needed manufacturer in the UK.

    1. In an ideal world we would all hope that Schlegel employees could continue their employment with the company and that new, responsible owners could be found. I know that administrators, staff and unions will seek to achieve this and of course as a political group we would do all we can to assist.

      The sad fact, however, is that the very same families who find themselves out of work are the ones who will be worst affected by changes to council tax.

      Families will find themselves struggling to make ends meet as a result of government changes.

      It is absolutely right that Labour highlights that point now because if we do not we let families face an inevitable struggle. If we shout from the highest rooftops we have a chance of changing things.

      In the same way that's why I highlight trends of businesses failing. In the past year we have seen major redundancies time and time again here in NWL.

      How many more businesses must fail and how many more jobs must go before we say there is a broader problem?

  7. This is a tragedy. The Conservative-Lib Dem Government keep telling us that they are creating jobs in the private sector to offset the three quarter of a million jobs they are cutting in the public sector. It just seems to me that ordinary hard working people are always the ones that suffer and those that cause the problems in the first place get away without any impact whatsoever on their lifestyles.

    1. Dave, you are absolutely right.

      Families are struggling right now, whether as a result of losing jobs due to negligent business owners or as a result of the wider economy.

      Hundreds of families right here in NWL are struggling and the highly inequitable actions of the Tory-lead government are only hurting them more.

  8. You are unbelievable, long term labour rule have brought this country to its knees . Mass imigration, welfare on tap ,and ten a penny name tag jobs for "community workers ". Who are the people who will now suffer because the present government have no choice to sort out tge shambles that blair/brown have left behind? Ex schlegel workers like me thata who.

  9. I am also a part of this mess and have been aware this past twelve months on the Ruia group dealings. I find it disgusting that Councillor Spence has turned the tragic loss of all these jobs into a political argument. I can only presume that under a labour controlled local council Mr Ruia would not have been a crook, invested all the promised funds into the business and Nissan would still be doing business.
    BMI. Baby would still be flying out of East Mids Airport and soap would still be made in Ashby. Oh and don't forget pigs might fly...

  10. It would be great to meet up with Schlegel workers to explain why I have made the comments I have about the Conservative impact on job losses here in North West Leicestershire and the effect that Conservative / LibDem benefit changes will have on out of work families.

    I would invite any Schlegel employees to contact me by phone or e-mail if they would like to discuss their concerns further.