UK labour body, Unite, says it is asking for a rapid meeting with authorities handling Unipart Automotive, following the component supplier’s placing into administration today (24 July).
The British union says the news will affect 1,224 workers at the business, controlled by H2 Equity Partners and in which the Unipart Group retained a passive equity stake.
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“This shock news is extremely concerning and will devastate the workforce,” said Unite national officer for the automotive sector, Roger Maddison.
“These job losses will hit Coventry hard, but will hurt communities across the country as Unipart Automotive is nationwide.
“It is very disappointing the company has sought administration and not an alternative buyer. Administration plunges these 1,224 workers and their families into immediate financial insecurity, denying them redundancy payments and putting their pensions at risk.
“We will be seeking an urgent meeting with the administrator to ensure the interests of the workforce are top of their considerations.”
The Unipart Automotive distribution business, previously known as Partco,
was sold by Unipart Group in 2011.
Unipart Group retained a passive equity stake, and a condition of the sale was Unipart Group exercised no control of the business.
“We are saddened by the Unipart Automotive situation and even though we sold control of this business years ago, we are concerned for the future of the employees,” said Unipart Group chairman and CEO, John Neill.
“We have recently been able to work constructively and collaboratively with
Andrew Page and are pleased they have been able to save 33 branches and around 350 jobs.
“They have a strong reputation for selling high quality products and brands and we look forward to making available a supply of Unipart-branded products to Britain’s car owners and Unipart Car Care Centres.”
Unipart Automotive established itself as a stand-alone entity with the exception of some distribution services provided by Unipart Group.
