Bone Steel placed into receivership.
No buyer to be sought
The announcement Thursday that Bone Steel had been placed in receivership has raised grave fears for the entitlements of the workforce says Community Union. The news has come as a shock as Bone Steel had won an £8 million contract earlier in the year and seemed well placed to supply the Ravenscraig development.
Community Union Regional Director Heather Meldrum said:
‘Community Union is dismayed that the one of Scotland’s oldest companies has breathed its last. Staff were in formed on Thursday that Bone Steel had been placed in receivership, that there would be no search for a buyer and were then escorted off the premises.
Despite the severity of the recession, Bone Steel never sought to engage with the unions or the workforce to search for a solution. This was an unfortunate decision as the £1 billion cost savings enjoyed by Corus last year were a result of a health partnership with the Trade Unions.
Community Union will be holding a meeting with all effected workers next week in order to examine the case for legal action and discuss the need to seek a protective award. Community Union will also introduce workers to the support services available for the recently unemployed.
Labour Party candidate for Motherwell and Wishaw Frank Roy said:
‘I have spoken to the Trade Union and management. I am very sorry to hear this announcement and am calling on all parties to do everything they can to save the company or some of the jobs.
I will continue to work with the trade union in the hope that a solution can be found’