Fairline Boats decided to lay off a third of its 300 workforce for up to five weeks on minimum pay, according to workers' union Unite. The move comes days after the Oundle-headquartered company was sold by Better Capital to a newly formed vehicle associated with Wessex Bristol.
A statement from new Fairline chief executive Ayiaz Ahmed said Wessex Bristol was "delighted" with the purchase and looks forward to "building a long-term, prosperous future". Also he added: "However, to address the immediate short term issues, we have made the regrettable yet unavoidable decision to instigate a temporary layoff of a number of staff for a period of four weeks as we continue to assess the business".
At the meantime the union has called for a meeting to discuss the future of the firm, with questions raised over the treatment of the workers.
Corby Council leader Cllr Tom Beattie says the council will do its best to help workers. He said: "This is of course very worrying news and understandably a very difficult time for those affected by job losses and those that are still unsure of their future. As a local authority we will do all we can for the workers that find themselves threatened with unemployment by offering advice and support in relation to benefit entitlement, re-training opportunities and, of course, continuing our aim to bring new jobs to Corby".
According to the Unite regional officer Sean Kettle, the organization's members were in a "state of shock" upon hearing the news. The union has since contacted Wessex Bristol to initiate talks, along with Tom Pursglove, Conservative MP for Corby and Corby Borough Council.
Sean Kettle said: "The new owner is reneging on a lay-off or short working time agreement which could have protected up to 60 per cent of their pay. Instead the company has chosen to use the lowest possible government statutory payment for lay-offs, which amounts to a maximum of £ 26 a day for five days in any three-month period, so a maximum of £ 130. Questions are being raised over the selection process for the 109 of the 300 workers and that the right to appeal the decision was denied. The loyal production employees have not had pay rise in seven years and since Better Capital took over in 2011, members have seen their terms and conditions eroded." "There are real concerns regarding industrial relations that need to be addressed," he said. "I would urge the new owners to see Unite and its members as part of the solution in creating a successful boat building company".
A statement from new Fairline chief executive Ayiaz Ahmed said Wessex Bristol was "delighted" with the purchase and looks forward to "building a long-term, prosperous future". Also he added: "However, to address the immediate short term issues, we have made the regrettable yet unavoidable decision to instigate a temporary layoff of a number of staff for a period of four weeks as we continue to assess the business".
At the meantime the union has called for a meeting to discuss the future of the firm, with questions raised over the treatment of the workers.
Corby Council leader Cllr Tom Beattie says the council will do its best to help workers. He said: "This is of course very worrying news and understandably a very difficult time for those affected by job losses and those that are still unsure of their future. As a local authority we will do all we can for the workers that find themselves threatened with unemployment by offering advice and support in relation to benefit entitlement, re-training opportunities and, of course, continuing our aim to bring new jobs to Corby".
According to the Unite regional officer Sean Kettle, the organization's members were in a "state of shock" upon hearing the news. The union has since contacted Wessex Bristol to initiate talks, along with Tom Pursglove, Conservative MP for Corby and Corby Borough Council.
Sean Kettle said: "The new owner is reneging on a lay-off or short working time agreement which could have protected up to 60 per cent of their pay. Instead the company has chosen to use the lowest possible government statutory payment for lay-offs, which amounts to a maximum of £ 26 a day for five days in any three-month period, so a maximum of £ 130. Questions are being raised over the selection process for the 109 of the 300 workers and that the right to appeal the decision was denied. The loyal production employees have not had pay rise in seven years and since Better Capital took over in 2011, members have seen their terms and conditions eroded." "There are real concerns regarding industrial relations that need to be addressed," he said. "I would urge the new owners to see Unite and its members as part of the solution in creating a successful boat building company".