BUILDERS AXE 200 AS PLANT IS CLOSED
Grim news for Bathgate workers
Two hundred workers are facing the dole queue after losing their jobs at a Bathgate - based construction company.
Employees at Dunne Group were given the devastating news this week that the firm was being put into administration with immediate effect.
Bosses at the company, which also has three other offices, in London, Leeds and Dublin, cited “severe cashflow issues” and its closure has led to the loss of more than 500 jobs in total.
A team of 16 staff are being kept on to help with the closure of the firm.
Established in 2001, the company has been involved in major projects including the new Queen Elizabeth University Hospital and Riverside Museum in Glasgow, and its website states a number of projects are still under construction. West Lothian
Council chiefs are offering support to Dunne workers through its PACE ( Partnership Action Continued Employment) scheme.
And construction union UCATT have also been offering advice to employees affected.
Joint administrator Tom MacLennan, of FRP Advisory, said: “This is a sad loss for the construction and building industry.
“The business faced substantial trading losses on some contracts, leading to severe cashflow pressures.
“Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.
“Given these issues, the joint administrators have had to cease trading, resulting in 524 employees being made redundant.
“A team of 16 staff will be retained to assist with the closure process and realisation of the business’ assets.”
Mr MacLennan continued: “Our priority is to work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”
Steve Dillon, regional secretary of construction union UCATT Scotland, said: “Contractors and clients approved and appointed Dunne Group to undertake work on their projects.
“They should have made financial checks to ensure the company was stable. It should not be the workers who have to pick up the bill for the company’s collapse.”
Council leader John McGinty urged workers to get in touch with the council to find out what help is available.
He said: “This will come as a shock to the workforce and it is extremely disappointing news.
“Details are slowly coming out and, at this time, we are unsure how many people affected live in West Lothian.
“However, I can assure all of them that the council is working with Scottish Development Scotland to ensure that the appointed administrators contact all employees as quickly as possible to provide them with all the help and support available, through the PACE (Partnership Action Continued Employment) pack.
“Finding new employment is never easy but West Lothian Council and our partners including the Scottish Government, Skills Development Scotland and Scottish Enterprise, are committed to helping the workforce at this difficult time.”
Workers affected by the closure who live in West Lothian, can call West Lothian Council’s Economic Development team on 01506 283400.