Hundreds are facing the axe at two firms
Firm makes cutbacks months after state investment
HUNDREDS of workers have either lost their jobs or are being consulted about possible redundancy at two leading Scottish firms.
Tullis Russell Papermakers, based at Markinch in Fife, suffered losses of £18.5 million over the last five years. A total of 300 workers there have already been made redundant. Meanwhile, oil company Wood Group PSN says the jobs of 380 workers are at risk.
UNION leaders have called for urgent intervention by the Scottish Government after more than 300 workers were made redundant at a paper-making firm that was plunged into administration.
Tullis Russell Papermakers, based at Markinch in Fife, called in administrators after experiencing a long-term decline in its market and cumulative losses of £18.5 million over the last five years. Steps which began last year to find a buyer for the business proved unsuccessful.
Meanwhile, oil company Wood Group PSN has warned that the jobs of 380 workers are at risk due to the continuing problems in the industry. The Aberdeen-based firm has entered a consultation with its employees over the move, with 80 staff currently involved in the UK end of the review expected to lose their jobs. It follows falls in the price of Brent Crude.
The job losses at Tullis Russell come less than two months after the official opening of a new £200m combined heat and power (CHP) biomass plant on site, which energy minister Fergus Ewing and Tullis Russell Group chief executive Chris Parr said would “safeguard 500 jobs”.
The plant, constructed and operated by one of Europe’s leading renewables’ operators, RWE, was financed, in part, with an £8.1m Regional Selective Assistance grant from the Scottish Government and Forestry Commission Scotland. It was designed to meet all of the paper maker’s electricity and steam requirements.
Unite Scottish Secretary Pat Rafferty said, “Last month the Scottish energy minster heralded a bright future for the Markinch workers with the opening of the new biomass plant, aided by a public subsidy of over £8 million.
“We know the company has been seeking a new buyer but it is remarkable in such a short space of time 325 jobs can go from being safeguarded to the scrapheap while a further 149 posts are put on notice. Our members’ on the employee board have had no communication or consultation from the directors that the company would be put into administration – it is totally unacceptable. Unite is calling for immediate intervention by the Scottish government to restore the employment status of the workers made redundant.”
First Minister Nicola Sturgeon announced a taskforce to support economic growth and employment across the area affected by the job losses. The Joint Taskforce for Fife will be chaired by the Scottish Government and Fife Council, with Deputy First Minister John Swinney leading for Scottish ministers.
Ms Sturgeon said: “It will work with the administrators to try to secure an alternative owner and it will look for ways to help mitigate the effects of job losses by putting in place appropriate support for workers to help them back into new jobs and training.”
Joint administrators Blair Nimmo and Tony Friar of KPMG concluded there was no option but to reduce the size of the workforce at the employee-owned company which produces paper board for cards, covers and packaging.
This led to 325 employees being made redundant “with immediate effect”. The remaining 149 workers have been retained to complete some orders.
Mr Nimmo, head of restructuring for KPMG in Scotland, said: “This is a sad day for the employees of Tullis Russell Papermakers, who have worked hard against the significant headwinds facing the global paper-making sector.”
On its jobs consultation, a spokesman for the Wood Group said it was “continuing to take a number of steps to help customers increase operating efficiency, safely improve performance from oil and gas assets and reduce their costs.”
A government spokesman said the events the job losses had been ‘unforseeable’ at the time of the biomass opening.