WORKERS ‘NOT PAID IN WEEKS’
WORKERS at one of the biggest names in the Welsh construction sector are facing uncertainty over their jobs after it gave formal notice of its intention to appoint receivers.
Cuddy Group is a leading demolition contractor and the main business interest of former Ospreys director Mike Cuddy.
Staff were gathered outside the Llandarcy depot yesterday to be told that the company had given formal notice of its intention to appoint receivers on Monday.
The company has been in discussion with financial company Grant Thornton.
Workers, some of whom say they have not been paid for four weeks, were asked yesterday to return to the depot on Monday with a form of ID so they could fill out the necessary paperwork and receive their payments.
One worker, who did not want to be named, said: “We still don’t really have much idea what’s going on. We’re no clearer than we were this time last week.”
The Cuddy Group has not made an official statement. Emails to the company’s inbox bounce back and telephones at its offices are going unanswered. We called a mobile phone number believed to be that of managing director Mike Cuddy. When we identified ourselves a man said “I am currently in a meeting” and put the phone down. We sent a text with a series of questions and were told in a response that all employees would be paid. He declined to comment. We also visited the address listed as Mr Cuddy’s correspondence address by Companies House but were told no-one was home.
Some staff members say they have been left without pay for a number of weeks. They say they have been given the option to work unpaid and apply for missed wages once administrators have been appointed.
One employee who preferred not to be named claimed he had not been paid for three weeks and is struggling to pay household bills. “We’ve all got families and mortgages to pay,” he said. “I’ve got no gas and no electricity and I’m on the verge of losing my house.”
Mr Cuddy has been managing director of Cuddy Group, which directly employs more than 300, since January 1997. The group has divisions including Cuddy Demolition, Cuddy Environmental, Cuddy Civil Engineering, Cuddy Plant and Transport and Cuddy Projects.
Cuddy was also a key figure in Welsh rugby, having helped the Ospreys assemble its group of highprofile players who became known as the Galacticos. He was Neath RFC’s benefactor but the demolition magnate threw his financial weight behind the Ospreys when the region was formed in 2003.
According to latest accounts lodged with Companies House, the group reported revenues of £31m in the year to the end of July 2016, down from £42m a year earlier.
The group has been involved in major projects like the demolition of the former Oceana nightclub building in Swansea, the Swansea Innovation Quarter and the Barry Waterfront development. It’s understood work has been halted on its demolition of the former Pontrilas factory in Llanelli.
Carmarthenshire council confirmed the project was now “on stop” and that it was in discussions with Cuddy operatives. The council’s executive board member for resources David Jenkins said: “Should Cuddy not be in a position to complete the remaining site works, we will engage with alternative contractors to complete what is required. No decision will be made until we are fully informed of the Cuddy situation.”
On Tuesday, July 10, it is understood staff at Cuddy were called into a meeting with senior management at the firm’s Tank Farm Road site to discuss the company’s future.
Yesterday, workers were again addressed in a group of around 100. One worker, Adrian Davies, said: “It’s very sad, I’ve been at Cuddy Group for four years and they’ve always been a very good employer.”
House builder Persimmon says it can take on all of Cuddy’s groundwork staff.
Martin Smith, managing director of Persimmon Homes East Wales, said: “We are delighted to be able to offer all of Cuddy’s groundwork staff new jobs at Persimmon Homes. In excess of 100 people could transfer from Cuddy into our business. This is fantastic news for these people, who would otherwise have been out of work. We are meeting with the workers on Monday and, should they wish, they can start with us on Tuesday.”