Anger over Remploy factor closures

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Work and Pensions Secretary Peter Hain said he realised the closure of the Remploy sites by next year will cause "disappointment" but he maintained that changes had to be made to secure the future of the organisation.

Mr Hain announced a 25% cut in the number of managers at Remploy, and changes in working practices under plans to modernise the company, which was set up after the Second World War to provide employment to injured servicemen and women.

The minister said it was "simply not viable" to keep all of Remploy's 83 factories open, but unions said closures were "completely unnecessary".

Paul Kenny, general secretary of the GMB union, said: "This announcement has angered Remploy workers and their supporters. This Government-controlled operation has failed its people, its principles and its purpose.

"These closures are completely unnecessary. If Remploy was called Northern Rock, I am certain that we would not be seeing a single redundancy."

Workers said it was the "darkest day" in Remploy's 60-year history, adding they felt "betrayed" by the Government.

Mr Hain told the Commons that Remploy factories had come under "enormous pressure" from low-wage, low-skill competition from countries such as China and the EU accession states.

A total of 55 Remploy factories will remain open, 15 more than originally planned, while there will be no compulsory redundancies among those affected by the closures, said the minister.

Remploy said it welcomed the Government statement, adding: "The company will now set about achieving the objective of quadrupling the number of disabled people it supports into mainstream employment. By 2012 Remploy plans to be supporting 20,000 disabled people into employment each year."