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TUC letter to Joan Ruddock, Minister of State for Energy and Climate Change, following RMT's meeting with Government on Thursday 6 August

To: Joan Ruddock MP
Minister of State, Department for Energy and Climate Change
3-8 Whitehall Place, London SW1A 2HH: 06 August 2009

Dear Joan

Thank you for agreeing to meet the TUC and unions representing the Vestas workforce today, including two local representatives from the plant on the Isle of Wight.

As you know, the TUC and unions have strongly contested the company’s decision to end production of wind turbines, both because of the catastrophic impact that has on the lives of those employed at the plant and in the supply chain, and because we are strongly committed to the development of a green manufacturing based here in the UK, as a key way to combat climate change and boost quality jobs and skills.

We have recognised the steps that the Government has already taken to find an alternative future for Vestas but, in our previous letter to the Secretary of State, Ed Miliband, we pressed that – even at this late stage – Government efforts should be made to persuade Vestas to think again and change their corporate strategy, so that alternative plans could be put in place. We are grateful for your confirmation that, following receipt of the letter, the Secretary of State did contact Vestas in a final attempt to persuade them to change course, including positively offering to explore financial support for new manufacturing capability. However, we are of course deeply disappointed to hear that Vestas have chosen, yet again, to reject all the proposals on offer, and are not even willing to consider a sale.

Our immediate and urgent concern is the impact that this closure will have on the workforce and the local community. We agreed that while the company may have abandoned a skilled and dedicated workforce, the Government and unions would not. We discussed actions taken in respect of previous company closures, where the potential damage to a local community was similarly severe and where the wider industry would otherwise risk losing essential skills. For example, under the auspices of the RDA, the Rover taskforce brought together all interested parties, including unions, business and skills agencies, to make every effort to ‘match’ workers facing redundancy to alternative skilled jobs, including offering active advice and support, and running re-skilling programmes, where appropriate. We believe SEEDA should be asked to take a similar initiative, including actively exploring the potential to match start-ups and inward investment with the skills, talent and capacity of the workforce on the island. We are also aware that the Rapid Response Service has been set up to bring together specialist Job Centre Plus and LSC officials to help workers in companies facing closure, and that also has a vital role to play. We understand that you will be in touch with the relevant ministers in DWP and BIS so that arrangements can be put in place to trigger such practical support, and to encourage full consultation with the relevant unions in that process.

At our meeting it was also reported that suggestions had been made that certain individuals would ‘never work again’ in the industry, and that the company would not agree to deem them as having been made redundant for the purposes of claiming benefits. We asked if you or the Secretary of State would contact the Company to make it absolutely clear that any actions or statements, made privately or publicly, that could be construed as victimisation are unacceptable (and probably unlawful) and we appreciate your active support on this point. In addition, on the practical issue of claiming benefits, we explained that the TUC has already made representations to senior ministers at the DWP concerning other cases where companies have refused to designate workers as ‘redundant’. As you are aware, in the past, such workers are then deemed to be ‘voluntarily unemployed’ and therefore risk losing entitlement to Job Seekers Allowance – and access to mortgage protection and other insurance schemes that depend on workers being formally regarded as having been made redundant. Following discussions with DWP ministers and officials, we understand that discretion can now be exercised and we would urge you to ask fellow ministers to make an immediate intervention and communication to the local Job Centre to ensure that all workers recently employed at Vestas who claim benefit are automatically treated as having been made redundant, even if the company refuses to formally designate them as such. It was evident at the meeting that you understand the human cost of unemployment on individuals, families and communities, especially in an area where vacancies are scarce, so I am sure you will understand the urgency of this request to make this process as smooth as possible.

Finally, for the future and following our letter to the Secretary of State, we welcomed your positive response to the TUC’s request to the Secretary of State for further dialogue involving the TUC and unions represented in green manufacturing and energy, with a view to then facilitating engagement with business representatives and securing practical steps to drive forward our shared commitment to cut emissions and boost decent green jobs here in the UK. As we all agreed, there should never again be a Vestas. I look forward to hearing from the Secretary of State on how we will take this forward.

Thank you once again for meeting with us.

Yours sincerely

Frances O'Grady
Deputy General Secretary

cc Bob Crow
Jack Dromey
Yvette Cooper