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Union warns Boalloy parent company: pay up or else

25th October 2007
Page 8
Page 8, 25th October 2007 — Union warns Boalloy parent company: pay up or else
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Which of the following most accurately describes the problem?

The union Unite might take action over the Boalloy administration

after claiming its Irish parent James Murray Fabrications indulged in 'cynical asset stripping'. Chris Tindall reports.

TRAILER AND bodybuilder Boalloy was "cynically stripped" of its assets in the months leading up to its administration, according to the union Unite, which is now threatening action if Boalloy's parent fails to support its workforce. Unite senior regional industrial organiser Steve Grieves has launched a blistering attack on the failed Congleton, Cheshire firm and its Irish parent, James Murray Fabrications (I MF), which acquired Boalloy 12 months ago. Administrators from PricewaterhouseCoopers (PWC) put the group into administration on 15 October after it incurred "sustained and significant losses"; the companies affected are Boalloy Industries, Boalloy Fastruck,M>railers and Boalloy Holdings.

PWC is currently establishing the size of Boalloy's debts and assets: 40 staff out of almost 500 have been kept on to run down the operation and sort out alternative suppliers.

Grieves claims it was clear from the outset that .11\4F "was not going to behave in an honourable way". He adds: "The company behaved like an employer from the 1960s and unfortunately British employment legislation does not protect British workers from such cynical assetstripping by foreign owners."

Unite wants Boalloy workers to receive all the wages and redundancy pay they are entitled to. Grieves warns: "Any less than that will result in the strongest union challenge."

JMF refuses to comment on the situation, except to say it is "business as usual".

• Crewe-based steel fabricator CHK is offering employ men' to some of Boalloy's redundanl workers. Spokeswoman Julie Lewis says CHK needs press brake operators and welders; it has already interviewed two former Boalloy employees and a dozen more have requested application forms.


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