WORKERS at a threatened Teesside chemical factory are taking legal advice on whether the site’s parent company has breached EU legislation by supporting operations in its home country instead of the UK.
Since putting its Artenius division into administration last week, in a move that saw the immediate loss of 137 jobs at Wilton, on Teesside, La Seda De Barcelona has come under increasing fire for the apparent lack of support it has given, and last night stood accused of “loading its debt” onto its UK operation.
Although it told shareholders via its website that the technology at the Wilton plant is “unsustainable” and outdated – and claimed it is supporting its workers during the current period, which has seen 105 further jobs put at risk – La Seda’s claims have been rubbished.
Furious workers and unions claim they have been “cut adrift” by their Spanish parent company, which is restructuring the group after making a £564m loss last year. Despite the failings in the wider group, the Wilton plant has maintained profitability, and demand for its plastic products has held up.
Only days before it was put into administration, bosses at the Artenius plant, formerly part of ICI, told The Northern Echo how an urgent cash injection was needed to ensure the site’s survival. It has since been revealed that the company went into administration owing at least £8m to the neighbouring Sabic plant.
At a meeting of Artenius workers and union officials on Friday, attended by more than 100 people, a delegation decided to travel to Barcelona later this week to lobby shareholders at the group’s annual meeting, and publicise their treatment to La Seda’s clients.
Last night, Vera Baird, MP for Redcar, said there was a determination to fight the move by La Seda and to make its actions known.
She said: “Our workers are taking further advice on whether La Seda is in breach of EU laws by favouring their Spanish businesses over workers and plant in the UK and by – it appears deliberately – loading their debt on to Artenius so as to make it take the fall to save itself.
“They are also determined to tell all of La Seda’s customers and suppliers that they have acted in this way.
“Perhaps Coca-Cola, one of their customers, would reconsider doing business with such a company in this age of ethical investing and purchasing.”
Mrs Baird said all efforts will be made to safeguard the future of the Artenius plant.
“The plant is top class and profitable and the sole reason for its closure is that La Seda has loaded Artenius with so much debt that it has not been able to find working capital or to pay off its bills,” she said.
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