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Remploy receives 'rescue package' | Remploy receives 'rescue package' |
(about 21 hours later) | |
The future of Remploy - the factories employing disabled people - looked more secure after the government announced a £555m package to safeguard its future. | The future of Remploy - the factories employing disabled people - looked more secure after the government announced a £555m package to safeguard its future. |
Work and Pensions Secretary Peter Hain said he had also told Remploy bosses that there would be no factory closures without ministerial agreement. | Work and Pensions Secretary Peter Hain said he had also told Remploy bosses that there would be no factory closures without ministerial agreement. |
Forty-three UK factories had been earmarked for closure with the loss of 2,500 jobs. | Forty-three UK factories had been earmarked for closure with the loss of 2,500 jobs. |
Mr Hain told Labour's conference there would be no compulsory redundancies. | Mr Hain told Labour's conference there would be no compulsory redundancies. |
He added that he was working with Cabinet colleagues to help win more public procurement contracts with Remploy to help secure its future. | He added that he was working with Cabinet colleagues to help win more public procurement contracts with Remploy to help secure its future. |
Trade union agreement | Trade union agreement |
The announcement averted a clash with the GMB, Unite and Community unions who have called for the sites to stay open and launched a nationwide campaign of marches and protests in the run-up to this week's Bournemouth conference. | |
It also headed off the threat of an embarrassing defeat for the government over the issue. | |
In a speech to the conference, Mr Hain said: "I have also made clear to Remploy management that no factory closures will take place without the agreement of government ministers. | In a speech to the conference, Mr Hain said: "I have also made clear to Remploy management that no factory closures will take place without the agreement of government ministers. |
"And, whatever the final shape of that agreement, the government will provide a subsidy of more than half a billion pounds over five years - a £555m package - for Remploy to have a successful future. A figure the trade unions have also agreed. | "And, whatever the final shape of that agreement, the government will provide a subsidy of more than half a billion pounds over five years - a £555m package - for Remploy to have a successful future. A figure the trade unions have also agreed. |
"And a categorical guarantee: There will be no compulsory redundancies for Remploy's disabled workers. Salaries guaranteed. Full final salary pensions protected as well." | "And a categorical guarantee: There will be no compulsory redundancies for Remploy's disabled workers. Salaries guaranteed. Full final salary pensions protected as well." |