Remploy Spennymoor to remain open

Remploy, the UK's leading provider of employment services for disabled people, has today provided details to employees of revised proposals for modernisation of the company.

Following lengthy consultations with trade unions, the company is proposing to retain operations at the Merrington Lane site.

In May this year Remploy produced a modernisation proposal which involved quadrupling the number of jobs it finds for disabled people in mainstream employment to 20,000 a year and closing 32 factories, including Spennymoor.

Remploy Spennymoor undertakes contract assembly, manufacturing and packing contracts. It employs 73 disabled people.

The company is planning to keep the site open in order to develop a plan for potential increases in business arising from public procurement regulations, specifically aiming to supply local authorities in the North East region.

Bob Warner, Remploy Chief Executive, said: "We are delighted that we are able to maintain production at Spennymoor, but if we are to be successful, the factory will need to show satisfactory progress in moving toward an acceptable loss per disabled employee.

"The possible extra work has not yet been secured and so a voluntary redundancy programme is to be introduced to reduce the factory's costs.

"We believe there is scope for improvements in the performance of our factories through local programmes of concerted action by our managers, shop stewards, MPs, local authorities and other stakeholders."

These could include:

• Local business development initiatives to secure more public/private sector work
• Training initiatives with colleges and learning and training bodies to support unemployed disabled/disadvantaged people and help reduce factory costs
• Other co-operation proposals with local authority-supported factories

Remploy's revised modernisation proposals have been submitted for approval to Peter Hain, Secretary of State for Work and Pensions.

Mr Warner added: "The plans which we have submitted meet the goals set by the Government for us to support many more disabled people into jobs in mainstream employment, avoid compulsory redundancy of disabled employees, and remain within a £555m spending limit over five years."

Notes to Editors:

• By 2012, Remploy will each year be finding more than 20,000 jobs for disabled people in mainstream employment in the UK
• Last year Remploy found 5,200 jobs for disabled people in mainstream employment in the UK
• Remploy Spennymoor, which undertakes contract assembly, manufacturing and packing work, moved to Merrington Lane in 1962
• Five years ago 112 people worked at the site and it now employs 75 people of whom 73 are disabled

Further information:

Helen Wardle:

tel 02476 515851, 07984 434712

Shiona Williams:

tel 02476 515831, 07977 436141

E-mail:

pressoffice@remploy.co.uk

Web:

www.remploy.co.uk

Address:

Remploy Limited,
Stonecourt,
Siskin Drive,
Coventry, CV3 4FJ